As a seasoned crypto investor with a decade of experience under my belt, I find the recent surge in Bitcoin accumulation behavior quite intriguing. Having weathered multiple market cycles and witnessed various trends unfold, I can confidently say that this trend seems reminiscent of the build-up to previous bull runs.
As a dedicated crypto investor, I’ve noticed an intriguing trend emerging in the Bitcoin market: The accumulation behavior of investors seems to be reappearing, as suggested by recent insights from on-chain analytics firm Glassnode.
Bitcoin Accumulation Trend Score Has Surged To The 1 Mark Recently
According to the recent weekly analysis by Glassnode, they’ve examined the investing trends among Bitcoin holders. Specifically, they looked at a key on-chain indicator called the “Accumulation Trend Score,” which indicates whether Bitcoin investors have been amassing or not during the last month.
The scoring system considers more than just fluctuations in wallet balances; it additionally factors in the size of each investor’s wallet, giving greater significance to those with larger investments.
When the value of this metric approaches 1, it signifies that either substantial entities or a significant number of smaller participants are actively involved in amassing resources within the network.
Alternatively, being close to zero implies that major players may have been dispersing their holdings or abstaining from any amassing activities over the past month.
Here are two variations of the indicator you’re referring to. Below, I’ve included the graph for the initial version, displaying the Accumulation Trend Scores distinctly for various wallet clusters within the specified sector.
Over the past period following Bitcoin’s all-time high, as depicted in the graph, I’ve noticed that the Bitcoin Accumulation Trend Score consistently showed deep red across the market. This pattern suggests that a shift towards distribution, rather than accumulation, was taking place.
Lately, the indicator has gradually shifted to blue for the different groups. It’s worth noting that the bigger sets of data are displaying more rapid growth, as the metric is almost at the 1 threshold.
The group that demonstrates the most activity in Bitcoin purchases is the one holding more than 10,000 BTC, often linked with entities such as spot exchange-traded funds (ETFs). According to Glassnode, these substantial wallets seem to be resuming a pattern of amassing more Bitcoin.
Since the Accumulation Trend Score assigns greater importance to larger groups, it’s no wonder that the collective market version has increased to 1, as a result of substantial accumulation by the biggest players within the industry.
Looking at the graph, we notice that the Accumulation Trend Score indicated comparable accumulation levels in the market around the time of the previous all-time high (ATH) surge. Therefore, it’s plausible that Bitcoin could experience a bullish impact due to increased buying activity this time as well.
BTC Price
At the time of writing, Bitcoin is trading around $61,300, up more than 7% over the past week.
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2024-08-15 15:39