On-chain data shows the Bitcoin network has seen a shift recently as mid-sized entities have shifted to a strong accumulation behavior.
Bitcoin Accumulation Trend Score Shows Whales Are Still Selling
In a new post on X, on-chain analytics firm Glassnode has talked about the latest trend in the Bitcoin Accumulation Trend Score for the various investor cohorts on the network.
The “Accumulation Trend Score” refers to an indicator that tells us about whether the BTC holders are participating in accumulation or distribution. The metric calculates its value by not only considering the balance changes happening in the wallets of the investors, but also by accounting for the size of the wallets themselves. This means that larger entities have a higher influence on the score.
When the value of the indicator is greater than 0.5, it indicates that large investors (or alternatively, a large number of small investors) are leaning toward a trend of accumulation. The closer the metric is to 1, the stronger this behavior is.
On the other hand, the metric being under the threshold implies that distribution is the dominant behavior on the BTC blockchain. The zero level acts as the extreme point on this side of the scale.
Now, here is the chart shared by Glassnode that shows the trend in the Bitcoin Accumulation Trend Score over the past year:
Looks like the largest of investors are still in a phase of distribution | Source: Glassnode on X
As displayed in the above graph, the Bitcoin Accumulation Trend Score turned neutral-red across the investor cohorts last month, suggesting the network was facing distribution.
Recently, however, the metric has recorded a shift. The mid-sized BTC investors, those holding between 100 to 1,000 BTC, have started participating in some aggressive buying, with the indicator sitting close to the 1 level. The 10 to 100 BTC cohort has also seen the indicator rise into the accumulation zone.
On the smaller end of the scale (below 1 BTC and 1 to 10 BTC groups), a neutral behavior is still the dominant one, indicating that retail hands are still unsure about the asset’s direction. The whales, holding between 1,000 to 10,000 BTC, have seen their selloff calm down a bit in recent days, but these humongous entities nonetheless remain in a phase of distribution.
Finally, the 10,000+ BTC investors, popularly known as the “mega whales,” have only stepped deeper into distribution, with the Accumulation Trend Score near zero.
Considering this trend, it would appear that the latest bullish push in Bitcoin could be fueled by the fresh demand that’s coming from the mid-sized entities. It now remains to be seen how the Accumulation Trend Score will develop for the groups in the coming days, and whether this structural shift will only advance further.
BTC Price
Bitcoin has seen a sharp rally of more than 10% in the last week, which has taken its price beyond the $120,000 level.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
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