Bitcoin: Accumulation Trend Score & All Latest Things for Your Next BTC Trade
- BTC accumulation has increased since FTX’s collapse.
- New Bitcoin buyers have witnessed few losses than average existing Bitcoin holders.
While the broad crypto market attempts revivals following FTX’s sudden fall, new Glassnode data evaluates whether Bitcoin’s extended sell-offs suggested continued bearish trends. Did the latest events trigger a massive psychological change among Bitcoin investors?
Distribution & Accumulation.
The on-chain analytic firm discovered that all categories of Bitcoin investors resorted to token accumulation after the latest price dip. Glassnode evaluated Bitcoin’s Accumulation Trend Score and found that the accumulation increase following substantial sell-offs could correspond to 2018.
This behavioral change also trailed many massive crash events, like March 2020 COVID slump, May 2022 LUNA crash, and June 2022, when prices dipped beneath $20K for the first time. The holder cohort with less than 1 BTC (shrimps) exemplifies this accumulation trend.
Glassnode revealed that these investors registered two unique ATHs of balance surge within the past five months. It highlighted that shrimps added more than 96.2K BTC since the FTX collapse, now holding more than 1.21 million BTC.
New BTC Buyers’ Fate
Glassnode also assessed new Bitcoin investments’ stance after the FTX crisis. The analytics site observed how the Near-Term Holder cost basis relates to the Spot Price, which stood at $18,830, discovering that the average latest buyer remained underwater by approximately -12%.
While confirming that new BTC buyers had a massive entry-level to average holders, Glassnode revealed that sellers neared exhaustion within the current Bitcoin market. Moreover, colossal distribution encounters equal accumulation. Glassnode added that this dragged STH Cost Basis beneath the Realized Price – advantaging new buyers.
Historic Moves
Assessing Bitcoin’s adjusted MVRV shows the current Bitcoin market explored the lowest values since the Dec 2018 & Jan 2015 pico-bottom. A reading below one in this metric means aggregate losses in the active marketplace.
Glassnode discovered that this index returned to 0.63, and that’s highly significant as only 1.57% of Bitcoin’s trading days have registered lower Adjusted MVRV values. Evaluating Bitcoin’s aSOPR index also showed that realized losses remained historically massive.
Glassnode stated that the latest market response to the FTX crash emerged as aSOPR – which broker beneath the lower band after staying above since March 2020. Meanwhile, this event’s significance is only comparable to the COVID slump and December 2018 market capitulation.
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