A report from on-chain analytics firm Glassnode shows that investors are looking to buy more Bitcoin again.

Bitcoin Accumulation Trend Score Recently Rises To The 1 Mark

In its latest weekly report, Glassnode discussed what Bitcoin investor behavior has been like lately. The on-chain metric of interest here is the “Accumulation Trend Score,” which basically tells us whether or not Bitcoin investors have accumulated over the past month.

The indicator calculates the score not only by tracking the balance changes in the holders’ wallets, but also by taking into account the size of their wallets. This gives more weight to larger investors.

When the value of this metric is close to 1, it means that the large entities in the network (or alternatively a large number of small owners) have participated in the accumulation.

On the other hand, if the number is close to 0, it indicates that the major participants have either distributed over the past 30 days or have not participated in any accumulation at all.

There are two versions of this indicator. Below is the chart of the first version, where the Accumulation Trend Score is shown separately for the different portfolio groups in the sector.

Looks like the various cohorts have started to turn blue in recent days | Source: Glassnode's The Week Onchain - Week 33, 2024

As you can see in the chart above, the Bitcoin Accumulation Trend Score for the entire market was deep red during the consolidation that followed the price’s all-time high (ATH), indicating that distribution was taking place.

Recently, however, the indicator has slowly turned blue for the cohorts. Interestingly, the larger groups show the more aggressive accumulation, with the metric very close to the 1 level.

The group showing the highest degree of buying is the 10,000+ BTC cohort, which can be associated with entities such as spot exchange-traded funds (ETFs). “These large wallets appear to be returning to a regime of accumulation,” says Glassnode.

Since the Accumulation Trend Score gives more weight to the larger cohorts, it is not surprising that the other version, for the combined market, has increased to 1, given the strong accumulation of the largest whales in the sector.

The value of the metric appears to have been quite close to 1 recently | Source: Glassnode's The Week Onchain - Week 33, 2024

The chart shows that the Accumulation Trend Score signaled similar levels of accumulation in the market last time around, during the rally to ATH. So it’s possible that Bitcoin will see a bullish effect from the buying this time around as well.

BTC price

At the time of writing, Bitcoin is trading at around $61,300, up over 7% over the past week.

The price of the coin seems to have registered a surge during the last 24 hours | Source: BTCUSD on TradingView

Main image from Dall-E, Glassnode.com, chart from TradingView.com