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On-chain data shows the largest of Bitcoin investors have continued to buy recently. Here’s whether the other cohorts have followed in the footsteps of these titans or not.
Mid-Sized Bitcoin Holders May Finally Be Showing A Shift
In a new post on X, the on-chain analytics firm Glassnode has discussed about the how the Accumulation Trend Score has looked for the various cohorts in the Bitcoin market.
The “Accumulation Trend Score” is an indicator that tells us about whether the Bitcoin investors are participating in buying or selling. The metric checks not only the balance changes happening in the wallets of the holders, but also the size of the holdings themselves. This means that the indicator puts a higher weightage on the changes taking place that involve the large investors.
When the metric has a value greater than 0.5, it means the large addresses (or a large number of small entities) are participating in accumulation. The closer the metric gets to the 1 mark, the stronger this behavior becomes.
On the other hand, the indictor being under 0.5 implies the holders are taking part in distribution, or simply not doing any accumulation. Here, the extreme point lies at the 0 level.
In the context of the current topic, the Accumulation Trend Score of the entire sector isn’t of interest, but rather that of each investor cohort separately. There are different ways to classify holders, but the relevant one here is on the basis of wallet size.
Below is the chart for the indicator shared by the analytics firm that shows how the behavior has changed for the Bitcoin holder groups over the past year.
As is visible in the above graph, the Bitcoin Accumulation Trend Score took a bright red shade for all cohorts back in February, indicating market-wide strong distribution.
Since this selloff, the indicator’s value has gone up for the various cohorts, implying a cooldown of selling pressure has occurred. This cooldown has varied across the groups, however, with one cohort in particular diverging far away from the rest: the 10,000+ BTC holders.
Popularly, the investors carrying between 1,000 to 10,000 BTC are known a the whales, so these holders, who are even more humongous, could be termed the “mega whales.”
From the chart, it’s apparent that this group took to buying in March and has since seen its accumulation deepen as the Bitcoin Accumulation Trend Score has reached a value of around 0.7.
The rest of the market has also been easing up its distribution in this period, but none of them have moved into the accumulation territory yet. That said, the 10 to 100 BTC investors are close, with the score now sitting at 0.5 for them. “This suggests at a possible shift in sentiment from mid-sized holders,” notes Glassnode.
It now remains to be seen whether the trend of increase in the indicator would continue in the coming days and the rest of the Bitcoin cohorts would catch up with the mega whales or not.
BTC Price
Bitcoin has taken to sideways movement recently as its price is still trading around $84,500.
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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