On-chain analytics firm Glassnode has highlighted how accumulation during the recent Bitcoin drop has looked weaker than some past crashes.<\/p>\n
In a new post<\/a> on X, Glassnode has talked about the latest trend in the Accumulation Trend Score<\/a> of Bitcoin. This indicator tracks whether the BTC investors are accumulating or distributing right now.<\/p>\n The metric determines this by taking into account for two factors: the balance changes happening in the wallets of the holders and the size of the balances themselves. The latter factor means that larger entities have a higher weightage in the indicator.<\/p>\n When the value of the Accumulation Trend Score is greater than 0.5, it means the large holders (or a large number of small entities) are in a phase of accumulation. The closer is the metric to the 1.0 level, the stronger is this behavior.<\/p>\n On the other hand, the indicator being under the 0.5 mark suggests distribution is dominant on the network. The selling can be considered the strongest at a value of zero.<\/p>\n Now, here is the chart shared by Glassnode that shows the trend in the 7-day moving average (MA) of the Bitcoin Accumulation Trend Score over the last few years:<\/p>\n As displayed in the above graph, the Bitcoin Accumulation Trend Score took a yellow shade as the cryptocurrency\u2019s January recovery rally topped out and a move downward followed. This suggests that the investors were distributing.<\/p>\n As the coin has stabilized above $65,000 recently, the indicator\u2019s color has changed to a darker one, implying it has broken back above the 0.5 mark. While this is a sign that there has been some accumulation at the post-crash price levels, the degree of it hasn\u2019t been too high.<\/p>\n From the chart, it\u2019s apparent that this behavior is in contrast to how the market reacted to the November crash. Back then, the Accumulation Trend Score took a deep purple shade, indicating an aggressive amount of accumulation from the big-money hands.<\/p>\n The LUNA and FTX crashes from the 2022 bear market<\/a> were also met with a similarly extreme accumulation behavior. It now remains to be seen whether the lack of demand this time around will mean that Bitcoin will take some time to settle into a low.<\/p>\n In some other news, Glassnode has shared an update in an X post<\/a> on how the major Bitcoin on-chain price models are looking.<\/p>\n