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Bitcoin Accumulation Trends Suggest Bullish Sentiment

Bitcoin has been trading above the $50,000 mark for more than a week, indicating strong demand and confidence from investors. According to a recent data analysis by Glassnode, a blockchain analytics platform, various cohorts of Bitcoin holders have been accumulating more coins over the past 30 days, adding up to approximately 111k BTC.

Glassnode’s Accumulation Trend Score, which measures the net change in the number of coins held by different wallet cohorts over a 15-day period, shows a noticeable shift from heavy distribution to light accumulation. This metric is based on the behavior of distinct entity wallets, taking into account their size and the amount of coins they have acquired or spent in the past two weeks. A value close to 1 indicates a trend toward accumulation, while a value close to 0 suggests distribution. The score excludes certain entities like exchanges and miners, which have different incentives and patterns than regular holders.

Accumulation Trend Score by cohort | Source: Glassnode

The data reveals that smaller cohorts, who hold less than 100 BTC, have been the most active in distributing their coins over the last month, possibly taking profits or reducing their exposure to volatility. However, based on the current trend scores, this group may have already passed the peak of their distribution phase and could be moving into a period of significant net accumulation. This could signal a change in sentiment and expectations among these holders, who may anticipate higher prices or increased adoption in the future.

On the other hand, larger cohorts, who hold more than 100 BTC, have been consistently accumulating more coins over the last month, demonstrating their long-term conviction and confidence in Bitcoin. These holders are likely to have more experience and resources in the crypto space, and may have a better understanding of the fundamentals and potential of Bitcoin. Their accumulation behavior could also create a positive feedback loop, as it reduces the available supply and increases the scarcity and value of Bitcoin.

This is the first time that all cohorts have been in some form of accumulation since October 2023, when Bitcoin was trading around $13,000. This suggests that the current price level is attractive and sustainable for most holders, and that the overall sentiment is bullish. As Bitcoin continues to gain more mainstream attention and adoption, the accumulation trends could indicate the strength and resilience of the network and the community.

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