The data show that the score of the tendency of the accumulation of Bitcoin experienced an increase in the highest point of the year. Here is what it could mean for the price of the assets.
Bitcoin accumulation tendency score has reached the bar of 0.34
In a new post on X, the Glassnod chain analysis company has spoken of the latest trend in the Bitcoin accumulation trend score. The “accumulation trend score” refers here to an indicator that tells us whether BTC investors accumulate or not.
The metric uses the balance changes that occur in carriers in the portfolios in order to calculate its value. In addition, it also applies the size of the equilibrium of investors as a weighting factor on these changes. This means that larger entities have a greater influence on the indicator.
When the accumulation trend score is greater than 0.5, this means that large investors (or alternately, a large number of small addresses) accumulate. The more the value of the metric is close to 1, the stronger this relationship.
On the other hand, the indicator being less than 0.5 suggests that the holders are in the distribution phase (or perhaps, they simply do not participate in accumulation). In this case, the extreme point is at 0.
Now here is the graph shared by the analytical company which shows the tendency of the score of the tendency of the accumulation of Bitcoin in recent months:
Looks like the metric has assumed an orange shade in recent days | Source: Glassnode on X
In the graph, the curve represents the price of the cryptocurrency and the shaded points the accumulation trend score associated with the corresponding date. A light yellow color means a value close to 0, while a dark purple almost 1.
From the table, it is visible that the score of the tendency of the accumulation of Bitcoin has a light hue in January, which means that investors participated in a strong distribution.
While the price has exceeded and decreased since then, the value of the indicator has recorded an increase, a sign that the sales behavior won among investors.
Today, metric has reached a shade corresponding to a value of 0.34, which is the highest it has been since the beginning of the year. “This suggests that, on aggregates, portfolios are starting to get into accumulation mode, with larger cohorts on recent cohorts despite recent low price,” notes the analysis company.
Obviously, market behavior has not yet turned to that of pure and simple accumulation, but the trend is naturally always positive given the lowered action that Bitcoin has recently crossed.
BTC price
Bitcoin witnessed a minor withdrawal during the last day, because its price fell to $ 84,700.
The price of the coin has seen its recovery slow down during the last couple of days | Source: BTCUSDT on TradingView
Dall-E star image, Glassnode.com, tradingView.com graphic
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