Bitcoin Investors Shift To Strong Distribution As Demand Fades, Glassnode Reveals
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The chain analysis company GlassNode revealed in a report how Bitcoin investors have seen a shift towards a strong change lately.
Bitcoin accumulation trend score is at a low level recently
In the latest weekly report Glass node The latest trends in Bitcoin accumulation trend scores have been discussed. this”Cumulative Trend Score” is an indicator that tells us how much BTC investors have accumulated overall participation.
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The indicator calculates its value not only by looking at the balance changes that have occurred in the investor’s wallets over the past month, but also by weighing the changes to the size of the holding itself.
When the value of the indicator is close to 1, this means that large investors (or large numbers of small entities) are increasing their shares. On the other hand, it is close to 0 indicating that the market is observing the distribution, or simply observing a lack of accumulation.
Now, here is a chart shared by analytics companies that show the trend of Bitcoin accumulation trend scores over the past few years:
In the chart, dark shadows correspond to values ​​related to accumulation, while light shadows correspond to distributions. Apparently, in the last few months of 2024, the market saw accumulation trend score in a very dark shadow, which means a large amount of accumulation is happening
This strong accumulation of large entities may be the reason for pushing price rally to a new historical peak (ATHS). A similar purchase phase was seen in the first quarter of 2024, when assets also enjoyed a rally.
From the chart, we can see that the previous accumulation phase is followed by a strongly distributed phase. A similar pattern appears to be happening this time, as the cumulative trend scores have been flashing in the distribution value since January.
Last year, the distribution phase began a long period of Bitcoin consolidation, but this time, cryptocurrencies have completely declined. As long as the cumulative trend score remains in the area, the price of the coin will continue to suffer losses.
Although cumulative trend scores are a useful indicator for measuring trends beyond the entire market, metrics can hide particle details related to market behavior. GlassNode shares another metric in the report, which contains these details, by looking at the last purchase at a specific cost-based level.
As analytics companies highlight in the chart, Bitcoin investors are buying “DIP” when BTC first entered this bearish phase, meaning they still believe Bulls run Go ahead.
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However, this is not the case in the latest crash, as these price levels still do not have the cost basis for any significant portion of the supply.
BTC price
Earlier this week recover Since its price is now back to $82,500.
Dall-E, Featured Images of GlassNode.com, Charts of TradingView.com
