The Bitcoin Accumulation Trend Score is a powerful heatmap that allows us to easily identify whether different cohorts of Bitcoin holders are accumulating or distributing their coins. Values close to 1 indicate accumulation, while values close to 0 indicate distribution.
Key Insights:
Distribution by Larger Holders (1-10k BTC):
Recently, addresses holding between 1 to 10k BTC have been distributing their coins, selling them at prices close to all-time highs. This suggests profit-taking behavior among larger holders.
Accumulation by Smaller Holders (Less than 1 BTC):
Addresses holding less than 1 BTC, often referred to as retail addresses, have shown continuous accumulation over time. These smaller holders are consistently buying Bitcoin, indicating strong belief in its long-term value.
Accumulation by Large Holders (Above 10k BTC):
Addresses holding more than 10k BTC have also shown recent accumulation. However, it is important to note that many of these large addresses belong to exchanges. It's common to see smaller address reserves migrating to larger exchange addresses.
Complementary Analysis:
To complement this analysis, we can use the "Bitcoin: Accumulation vs. Distribution by All Cohorts (60D)" chart. This chart provides a simple way to evaluate the 60-day variation in Bitcoin supply by cohort. It helps us understand the sentiment and behavior of different groups of holders more deeply.
Conclusion:
These indicators help us understand how Bitcoin supply is being managed, from the smallest retail investors to the biggest players in the cryptocurrency market. By analyzing accumulation and distribution trends, we can gain insights into market sentiment and potential future price movements.
Written by joaowedson
