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Bitcoin could experience upward movement as it enters a robust accumulation phase.


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Data from cross-chain analytics firm Glassnode reveals that bitcoin investors have recently aggressively accumulated the cryptocurrency, a trend that could help prolong the ongoing rally.

The “accumulation trend score” is the main indicator being analyzed, as it reflects whether bitcoin investors have accumulated or distributed digital assets over the past month.

The degree of accumulation trend indicates not only the volume of coins that are bought or sold by their holders, but also the portfolio volumes of the participants involved in the process of accumulation or distribution.

A score close to 1 indicates that large entities or a large number of small investors are currently bundling the asset. Conversely, scores close to zero indicate that owners are handing out or not collecting much at the moment.

The graph showing the trend in the result of Bitcoin’s accumulation trend over the past few years shows that during the first months of the recent rally, the scale was closer to zero, which means that a significant distribution occurred among large entities. This may indicate that investors were not confident that the rally would continue and were eager to lock in their profits.

However, the recent trend turned around as the price approached $30,000. Interestingly, the current rally appears to be following a similar pattern to the April 2019 rally, which started on the heels of bear market bottoms and encountered significant distribution in its early stages.

When this rally approached the “cycle baseline,” investor behavior shifted towards heavy accumulation, and the indicator turned dark purple (values ​​are very close to 1). The April 2019 rally saw sharp upward momentum after this buildup began.

With the price of Bitcoin now approaching the $30,000 mark, the degree of accumulation trend has also shifted towards accumulation. This level represents the baseline for the current cycle, which bears a structural similarity to the 2018-2019 cycle.

If the sustained rally continues to follow the pattern of the April 2019 rally, the recent shift towards accumulation could be a positive development for higher prices. At the time of writing, Bitcoin was trading at around $28,200, which represents an increase of 4% over the past week.

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