Analysis: Bitcoin Faces Intense Churn at $87,000, Signaling Market Directional Decision

Dec 26 — Crypto analyst Murphy noted that Bitcoin’s on-chain cost basis distribution chart shows notable supply concentrations (large volume bars) at $87,000 and $84,500, outpacing other price levels. Excluding Coinbase’s wallet restructuring on Nov 22, at least half of the real turnover for the 1.12 million BTC in the $83,300-$84,500 range should be deducted. Thus, $87,000 stands as the highest volume bar and strongest support level in the on-chain structure. Historically, a large supply concentration forming a sizeable volume bar in a narrow price range signals an impending market direction shift. Supply stacking reflects bull-bear divergence, and when tension reaches a critical point, a clear winner emerges. Murphy believes the current on-chain structure points to a bullish outlook: as long as the volume bar’s key support holds, the market’s direction will become clearer.