• Bitcoin investors have shifted towards aggressive accumulation recently, which may help sustain the rally.
• Glassnode’s “Accumulation Trend Score” indicates that large entities are accumulating the asset.
• This structural similarity is similar to what was seen during the April 2019 rally.
Bitcoin Investors Shifting Towards Aggressive Accumulation
On-chain data shows that Bitcoin investors have shifted towards aggressive accumulation recently, something that may help sustain the rally longer.
Glassnode’s Accumulation Trend Score
According to data from the on-chain analytics firm Glassnode, there is a structural similarity forming between the current and 2018-2019 BTC cycles. The indicator of interest here is the “accumulation trend score,” which tells us whether Bitcoin investors have been accumulating or distributing over the past month. This metric’s value represents not only the number of coins that the holders are selling or buying but also the wallet sizes of the entities that are taking part in the accumulation or distribution trends. When this score has a value near 1, it means large entities (or many small investors) are accumulating at present; values close to 0 suggest holders are distributing (or not accumulating much).
Chart Showing Accumulation Trend Score
The following chart displays how this trend score has evolved over time: As displayed in this graph, it seems to have been close to 1 recently | Source: Glassnode on Twitter
This implies that during earlier stages of this rally, there was heavy distribution occurring from larger entities as they thought it would not last long – however, now these same entities seem to be aggressively accumulating BTC instead.
Similarities With April 2019 Rally
Interestingly enough, this structural similarity seems similar to what was experienced during April 2019’s bull run – both rallies started out of bear market lows and faced heavy distribution early on before transitioning into an accumulation phase later on.
Conclusion
In conclusion, recent on-chain data suggests Bitcoin investors have shifted towards more aggressive accumulation lately; this could potentially help extend and sustain this price rally even further than expected
