On-chain data shows that all bitcoin cohorts are exhibiting accumulation behavior right now, the first time this has happened so far this year.
bitcoin Accumulation Trend Score Near Perfect for All Groups
In its latest weekly report, the on-chain analysis firm glass node has talked about the accumulation and distribution trends among different btc cohorts. The relevant indicator here is the “Accumulation Trend Score”, which tracks the behavior that bitcoin investors are displaying at the moment.
The metric does this by tracking 30-day changes in holders’ balances. The indicator also takes into account the size of entities when looking for accumulation and distribution behaviors.
When the indicator value is close to 1, it means that the btc focus group has been accumulating recently. On the other hand, values close to 0 imply that the distribution has been the dominant trend among these holders.
Now, here’s a graph showing how the cumulative propensity score has changed for the different cohorts over the past year:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/11/All-Bitcoin-Cohorts-Are-Buying-Now.png" alt="bitcoin Accumulation Trend Score” width=”8252″ height=”3704″/>
Looks like the value of the metric has been dark blue throughout the market recently | Source: Glassnode's The Week Onchain - Week 45, 2023
From the chart above, you can see that the bitcoin market has gone through several phases this year where all cohorts participated in a large distribution.
Unsurprisingly, the cryptocurrency’s price had felt resistance every time investors went through its distribution activity period. Uptrends, on the other hand, occurred naturally as balanced inflows occurred between the different cohorts.
However, during these accumulation phases there was no point at which all cohorts displayed the behavior simultaneously. However, that was only the case until the end of October, when the market took an unusual turn.
As evident from the chart, all bitcoin pools started buying at that time and continued to do so in the following days. It hasn’t just been light accumulation either, as the accumulation trend score has remained deep blue for the groups, suggesting that heavy buying has been taking place.
It is no surprise that bitcoin has recorded strong bullish momentum coinciding with this period of strong accumulation. The fact that investors have not yet stopped buying activity could also be a bullish sign, as it means there could still be more left in the tank for the rally.
Glassnode has also noted how accumulation has been particularly significant on the smaller side of the market, as the balance shifts for shrimp (less than 1 btc), crabs (1 to 10 btc), and fish (10 to 100 btc). is considerably positive at the moment.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/11/1699456126_849_All-Bitcoin-Cohorts-Are-Buying-Now.png" alt="bitcoin accumulation” width=”2000″ height=”1152″/>
The value of the metric seems to have been positive since a while now | Source: Glassnode's The Week Onchain - Week 45, 2023
“The combined rate of balance increase for this subgroup is currently equivalent to 92% of the newly mined supply and has remained at an elevated state since May 2022,” the report explains.
btc Price
After seeing a setback yesterday, bitcoin has already recovered above the $35,000 level.
<img decoding="async" loading="lazy" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/11/All-Bitcoin-Cohorts-Are-Buying-Now" alt="bitcoin price chart” width=”1534″ height=”869″/>
btc has observed a jump in the past day | Source: BTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, TradingView.com charts, Glassnode.com
