On-chain data shows the Bitcoin mega whales are still in a phase of distribution despite the other cohorts shifting to buying.
The metric calculates its value by not only looking at the balance changes happening in the wallets of the investors, but also accounting for the size of the wallets themselves. This means that the behavior of the larger entities has a larger influence on the score.
When the value of the indicator is above 0.5, it implies the large investors (or alternatively, a large number of small hands) are participating in accumulation. The closer is the indicator to 1, the stronger is this behavior.
On the other hand, the metric being under the threshold suggests distribution is the dominant behavior among BTC holders. The zero mark serves as the extreme level for this side of the scale.
Now, here’s the chart shared by Glassnode in the report that shows the trend in the Bitcoin Accumulation Trend Score separately for the various investor cohorts:
As displayed in the above graph, the Bitcoin Accumulation Trend Score assumed a neutral-distribution value across the market in mid-September, but a shift has occurred recently.
The sharks, investors holding between 100 to 1,000 BTC, were the first to pivot to buying. And it wasn’t just any degree of accumulation, but a strong one, with the metric sitting close to 1.
Very recently, the retail investors (below 1 BTC and 1 to 10 BTC groups) have also embraced accumulation, potentially attracted by the hype of the Bitcoin bull run.
While sharks and smaller entities have been accumulating, the top end of the scale has shown a different behavior. The whales (1,000 to 10,000 BTC) have continued to hold a neutral behavior, neither buying nor selling, while the largest of entities on the network, those holding above 10,000 BTC, have been in stark contrast to the sharks with their Accumulation Trend Score sitting deep in the distribution zone.
At the time of writing, Bitcoin is floating around $120,900, down 2.5% over the last 24 hours.
