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Glassnode has talked in regards to the 4 phases of Bitcoin accumulation and distribution through the previous yr of their newest report.

Bitcoin Accumulation Trend Score Shows Market Has Been Selling Recently

As per this week’s version of the weekly Glassnode report, the market has noticed 4 distinct phases within the final twelve months.

The related indicator right here is the “accumulation trend score,” which tells us about whether or not market members are accumulating or not proper now.

Not solely does the metric examine how a lot traders are shopping for/promoting, nevertheless it additionally takes into consideration the dimensions of holdings of those members. As such, the rating gives the next weightage to bigger holders accumulating/distributing.

When the worth of this metric is nearer to 1, it implies that huge members or a big a part of the community has been accumulating through the previous month.

On the opposite hand, the indicator’s worth being close to zero implies giant holders have both not been accumulating not too long ago, or outright distributing their cash.

Now, here’s a chart that reveals the development within the Bitcoin accumulation development rating over the past yr:

The worth of the metric appears to have been nearer to zero in latest days | Source: (*4*)

As you possibly can see within the above graph, the market appears to have gone by way of 4 phases of the Bitcoin accumulation development rating over this era.

Following the all-time excessive again in November, traders aggressively gathered the “dip” as the worth of the indicator was virtually precisely 1. This marked the primary of those phases.

Next, as the worth slowly got here down, these latest accumulators went into vital loss. This result in the holders shifting to a development of distribution.

In the third part, though the worth plunged down even tougher because the LUNA collapse happened, traders as soon as once more began accumulating as if making an attempt to catch the underside.

After this months of accumulation, the market lastly noticed a rally above $24k. However, as a substitute of constant to purchase extra, holders shortly latched onto this chance of exit liquidity and engaged in profit-taking.

As a results of this distribution, this new fourth part has noticed Bitcoin accumulation development rating values near zero.

BTC Price

At the time of writing, Bitcoin’s price floats round $19.8k, down 2% previously week. Over the final month, the crypto has misplaced 15% in worth.

The beneath chart reveals the development within the value of the coin over the previous 5 days.

Looks like the worth of the crypto remains to be transferring sideways | Source: BTCUSD on TradingView

Featured picture from Yiğit Ali Atasoy on Unsplash.com, charts from TradingView.com, Glassnode.com