Recent on-chain data indicates a decline in the Bitcoin Accumulation Trend Score, suggesting that investor cohorts are now selling off their holdings.
Bitcoin Accumulation Trend Score Sitting at 0.21
In a recent update on X, the on-chain analytics firm Glassnode discussed the current state of the Accumulation Trend Score for Bitcoin. This metric, known as the Accumulation Trend Score, provides insights into whether Bitcoin investors are accumulating or not.
The score considers the changes in investor wallets alongside the size of the holdings, offering a comprehensive view of accumulation trends among investors.
A value close to 1 suggests net accumulation by large entities or a significant number of small addresses, while a value near 0 indicates a phase of distribution or reduced buying activity.
Below is a chart illustrating the trend in the Bitcoin Accumulation Trend Score over the past year:
The dark blue/violet shade in the graph represents high values of the Bitcoin Accumulation Trend Score, whereas an orange/red shade indicates values close to zero.
From the chart, it’s evident that towards the end of 2024, the Bitcoin Accumulation Trend Score showed a dark shade, signifying heightened buying activity by whales that propelled Bitcoin to a new all-time high.
However, accumulation has decreased since the end of the year, with the indicator now plummeting to 0.21.
Glassnode also provided data on a different version of the Accumulation Trend Score that delves into the accumulation and distribution patterns among various BTC cohorts.
Notably, mega whales holding over 10,000 BTC have been selling since September, with an intensified selling trend observed in recent weeks. Other cohorts have also transitioned from buying to selling, including whales with holdings between 1,000 and 10,000 BTC.
It is plausible that unless the blue color reappears in this chart, Bitcoin may continue its bearish trajectory.
Bitcoin Price
Currently, Bitcoin is trading around $93,900, marking a decrease of more than 3% over the past week.
