Glassnode: Bitcoin Market Behavior Now Back to Strong Accumulation

The latest data from Glassnode shows that Bitcoin market investors have recently shown strong accumulation behavior.

Bitcoin Holders Show Strong Accumulation For The First Time In Months

According to the latest weekly report from Glassnode, the BTC accumulation trend score showed a value of more than 0.9 in the last two weeks.

The “accumulation trend score” is an indicator that tells us about the general accumulation trend or general distribution of Bitcoin investors’ portfolios.

The metric filters both miners and exchanges, only keeping track of when whales (and small entities in large numbers) add to their wallets.

When the accumulation trend score is close to zero, it means that investors are distributing at the moment, or there is simply not enough accumulation in the market at the moment.

On the other hand, indicator values ​​towards one mean that holders have shown strong accumulation lately.

Scores between the two extremes show some accumulation taking place, but investors have little conviction at this point.

Now, here is a graph showing the trend of Bitcoin’s Accumulation Trend Score over the past few years:

The value of the metric seems to have seen an increase in recent days | Source: The Week Onchain by Glassnode – Week 22, 2022

As you can see from the chart above, Bitcoin’s accumulation trend score was in the intermittent accumulation zone during the January to April period.

However, over the past two weeks, the indicator’s value has risen and remained above a 0.9 score, suggesting that investors have been hoarding a lot lately.

Related Reading | Bitcoin Supply On Earnings Drops To 55%, Has It Bottomed Yet?

Historical occurrences of similar values ​​of the metric have been observed during bullish and bearish periods.

In the early cases, when the price peaks, the market sees a large influx of relatively new buyers offsetting any distribution from smart money holders.

Related Reading | JP Morgan Embraces Blockchain Technology, But Jamie Damon Remains Critical Of Bitcoin

These latest cases take place after the price underwent a strong correction, where investors are now turning from uncertainty to accumulation as the value of BTC per dollar rises.

However, there was one exception to this. In December 2021, a strong accumulation occurred during the downtrend, but the price continued to fall and investors quickly returned to low conviction.

BTC price

At the time of writing this article, the price of Bitcoin hovers around $31,600, up 8% in the last seven days. Over the last month, the cryptocurrency has lost 18% in value.

It seems that the value of the currency has risen in the last two days | Source: BTCUSD on TradingView Featured Image from Unsplash.com, Charts from TradingView.com, Glassnode.com

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