On-chain data shows the Bitcoin network has seen a shift recently as mid-sized entities have shifted to a strong accumulation behavior.
When the value of the indicator is greater than 0.5, it indicates that large investors (or alternatively, a large number of small investors) are leaning toward a trend of accumulation. The closer the metric is to 1, the stronger this behavior is.
On the other hand, the metric being under the threshold implies that distribution is the dominant behavior on the BTC blockchain. The zero level acts as the extreme point on this side of the scale.
Now, here is the chart shared by Glassnode that shows the trend in the Bitcoin Accumulation Trend Score over the past year:
As displayed in the above graph, the Bitcoin Accumulation Trend Score turned neutral-red across the investor cohorts last month, suggesting the network was facing distribution.
Recently, however, the metric has recorded a shift. The mid-sized BTC investors, those holding between 100 to 1,000 BTC, have started participating in some aggressive buying, with the indicator sitting close to the 1 level. The 10 to 100 BTC cohort has also seen the indicator rise into the accumulation zone.
Considering this trend, it would appear that the latest bullish push in Bitcoin could be fueled by the fresh demand that’s coming from the mid-sized entities. It now remains to be seen how the Accumulation Trend Score will develop for the groups in the coming days, and whether this structural shift will only advance further.
Bitcoin has seen a sharp rally of more than 10% in the last week, which has taken its price beyond the $120,000 level.
