🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Bitcoin’s Accumulation Trend Score Is Approaching Midpoint

Published 26/06/2023, 11:50
© Reuters.  Bitcoin’s Accumulation Trend Score Is Approaching Midpoint

  • Glassnode reveals a more balanced regime in the Bitcoin Accumulation Trend Score.
  • Only the Dolphin to Shark cohort, with 100 to 1,000 BTC, is still experiencing aggressive distribution.
  • The nature of the transition shows a fading distribution intensity among Bitcoin holders with 0 to 100 BTC.

Data from Glassnode, the on-chain and financial metrics platform, reveals a more balanced regime in the Bitcoin Accumulation Trend Score by Cohort. The Bitcoin market metric transitioned from a heavy distribution to a balanced one. Glassnode indicates that only the Dolphin to Shark cohort, with 100 to 1,000 BTC, is still experiencing aggressive distribution.

The nature of the transition shows a fading distribution intensity among Bitcoin holders with 0 to 100 BTC in their portfolio. This category forms the higher population of holders and BTC traders in the crypto market. Their Accumulation Trend Score is a testament to the change in dynamics in the Bitcoin market in the past few weeks. It shows more users are moving from BTC distribution to accumulation.

At the top end of the chart are the Whales holding more than 10,000 BTC in their portfolio. In a recent regime, these Whales were more in the accumulation phase. However, they have slightly transitioned toward distribution, suggesting some profit-taking behavior. That could explain the consolidation experienced by Bitcoin price after the recent rally.

As mentioned above, only the mid-range BTC holders, Dolphins and Sharks, remain deep in the distribution phase. Although the figure from Glassnode suggests, they could be in the early stages of transition.

The overall Bitcoin Accumulation Trend Score tends toward the median range and could set the market up for another surge. The direction of the next surge would depend on other market variables and traders’ prevailing sentiment.

Bitcoin and cryptocurrency struggle between regulatory pressure and the technology’s evolution. A recent clampdown by the US Securities and Exchange Commission (SEC) on some top crypto exchanges left many users worried about the future of the technology. However, the fundamentals behind Bitcoin’s development act as a source of confidence for its supporters.

With the next Bitcoin halving coming in a few months, many users expect BTC to embark on a bull run that could see it reaching a new all-time high.

Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Bitcoin’s Accumulation Trend Score Is Approaching Midpoint appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.