Analysis: The on-chain data indicates that the BTC bottom is taking shape, with $66,000 being the key support level for smart money entry.

May 8 – Analyst Murphy noted that while the market is fixated on Bitcoin’s $60,000 price low, on-chain chip structure analysis suggests the crypto’s true bottom foundation may lie in the dense turnover zone around $66,000. Data shows ~440,000 BTC has accumulated in this area, with 240,000 BTC traded between February and April. Currently, the $65,000-$78,000 range holds 13.8% of Bitcoin’s chip distribution—still below the 18.7% level seen before the October 2022 FTX flash crash. But traditional funds (including ETFs and MicroStrategy) have locked up ~13% of circulating supply at relatively high levels, giving the current ratio a solid base for a bottom structure. A double retracement and further turnover in this range would strengthen the bottom’s “downward resilience.” Murphy emphasized the true bottom shouldn’t be tied to the $60,000 low, but rather the $66,000 turnover zone where large funds entered. Turnover in the $78,000-$82,000 range remains insufficient, and the market still needs to digest divergence.