The Bitcoin (BTC) market has gone through different stages of accumulation/distribution over the past few months. During the market crash that followed the double top formation last year, market participants bought at the bottom. Because they thought this was an excellent opportunity to enter the market. As a result, the accumulation trend has remained highly refined. So, what are Bitcoin investors doing right now?
Are Bitcoin investors in the accumulation phase?
The accumulation trend has remained refined over the past year. As can be seen in the chart below, it is headed towards 1 (purple). In the next phase, the distribution trend, led by hidden investors, took shape as participants received bear market confirmation. Next, cryptocoin.com As we have also reported, the Terra ecosystem has collapsed. During the crash, savings resurfaced as lows were bought. Now, we are currently in the fourth phase and the search for exit liquidity continues.
According to Glassnode, the opportunity to distribute coins and take profits was seen as a late opportunity by short-term investors. As a result, as shown above, the trend score remains rather weak. Thanks to this trend, Bitcoin continues to trade below its actual price. The actual price is the average price at which each coin in circulation was last bought.
The time frame is getting longer
However, in the multi-year macro timeframe, there is a reverse trend. Macro hodling behaviors point to different data. Helps identify trends in long-term HODLer accumulation or spending. As a rule of thumb, downtrends indicate HODLing, while uptrends indicate spending. As shown below, vitality is currently in a strong downtrend. It fell below the triple tops of the post-2018 bear market. The same is happening right now, according to Glassnode. “HODLing conflicts with a dominant regime,” Glassnode says.
It is also necessary to take a look at the supply dynamics and accumulation addresses. This will allow us to better understand whether the argument is truly stable. As shown below, there is an “explosive increase” by backlog addresses. In addition, the illiquid supply is also increasing. The same certainly points to something positive. Therefore, Glassnode emphasizes that the supply of long-time investors will continue to rise in the coming months. It also adds weight to the situation when combined with network vitality and the HODLer regime.
Therefore, according to experts, we conclude that Bitcoin is currently stress-testing its short-term holders. Long-term HODLers, on the other hand, don’t seem to feel any impact from the ongoing price action. Currently, Bitcoin is changing hands at $21,650, up 2%. It rose 9.2 percent in the last 7 days.
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