Glassnode Report Reveals Bitcoin Accumulation is being Returned to by Investors 💰

Secret Bitcoin Accumulation Behavior Unveiled by Glassnode Analytics

A recent report by on-chain analytics firm Glassnode has shed light on the Bitcoin accumulation behavior among investors, providing a glimpse into the market dynamics. One key metric analyzed in the report is the Accumulation Trend Score, which offers insights into whether investors have been accumulating Bitcoin in the past month or not.

Understanding the Accumulation Trend Score

The Accumulation Trend Score is calculated by monitoring the balance changes in investor wallets and considering the size of these wallets. This metric gives more weight to larger investors, providing a comprehensive view of accumulation trends in the market.

When the Accumulation Trend Score approaches 1, it indicates active accumulation by large entities or a significant number of small holders.
A score close to 0 suggests limited participation in accumulation by major players in the market.

Diving Deeper into the Analysis

There are two variations of the Accumulation Trend Score, with the first version illustrating the score for different wallet groups within the sector.

According to Glassnode’s findings, the Bitcoin Accumulation Trend Score was predominantly in the red zone during a period of market consolidation following a price all-time high (ATH). This indicated a phase of distribution rather than accumulation.

However, recent observations reveal a shift towards accumulation, particularly among larger cohorts, with the Accumulation Trend Score nearing the coveted 1 level.
Notably, the 10,000+ BTC cohort, which includes entities like spot ETFs, is exhibiting significant accumulation behavior, signaling a return to an accumulation phase.

Implications for the Market

Given the emphasis on larger cohorts in the Accumulation Trend Score, it is no surprise that the combined market score has surged to 1, reflecting strong accumulation trends among major whales in the market.

Comparing current accumulation levels to past data, Glassnode suggests that Bitcoin could witness a bullish momentum similar to that seen during previous ATH rallies, driven by the ongoing accumulation activity.