The on-chain analytics firm Glassnode has explained how the smallest of Bitcoin holders are now the only ones still participating in net distribution.
Bitcoin Accumulation Trend Score Shows Retail Still Selling
In a new post on X, Glassnode has discussed about how the Accumulation Trend Score has developed for the different Bitcoin investor cohorts recently. The “Accumulation Trend Score” is an on-chain indicator that tells us about whether the investors are accumulating or distributing.
The metric bases its value on two factors: the balance changes happening in the wallets of the investors and the size of the wallets that these changes are occurring in. The indicator puts a higher weightage on larger wallets, meaning that the accumulation/distribution behavior of the big-money holders influences its value more.
When the Accumulation Trend Score is greater than 0.5, it means the large holders (or alternatively, a large number of small hands) are accumulating. The closer is the metric to 1.0, the stronger is this behavior.
On the other hand, the indicator being under 0.5 implies distribution is dominant in the market. In this case, the zero level acts as the extreme point, where the selling is the strongest.
In the context of the current topic, the combined Accumulation Trend Score of the entire market isn’t of interest, but rather the individual score for each of the investor groups in the sector.
The analytics firm has divided holders into these cohorts based on wallet size. Below is the chart that shows the trend in the metric for these Bitcoin groups over the past year:
Looks like the value of the metric is close to 1 for the largest investor cohort | Source: Glassnode on X
The last time that Glassnode shared an update on the indicator, the whales (1,000 to 10,000 BTC) and sharks (100 to 1,000 BTC) were just starting to pivot toward accumulation. Now, it seems this trend has deepened as the Accumulation Trend Score has grown further for these cohorts to around 0.8-0.9.
The largest of entities in the market, those holding more than 10,000 BTC, were the first to switch to buying back when the market was still in a phase of uniform distribution. These ‘mega whales‘ have been showing strong accumulation for a while now and this trend has only continued recently as the score remains at 0.95 for them.
From the chart, it’s visible that a fourth cohort has joined in on the buying very recently: the 10 to 100 BTC investors. So far, their accumulation remains weak with the indicator sitting at 0.6.
While all of the mid-sized and larger investors are buying now, the small investors are still stuck in a phase of distribution. The Accumulation Trend Score currently has a value of 0.2 for under 1 BTC holders and 0.3 for 1 to 10 BTC ones.
BTC Price
Bitcoin has been stuck in a phase of sideways movement recently as its price is still trading around $94,000.
Looks like the price of the coin has been unable to find a break | Source: BTCUSDT on TradingView
