Bitcoin Accumulation Trend Score Turns Red: More Decline Coming?

Glassnode, an on-chain analytics firm, has shared an update on the Bitcoin Accumulation Trend Score, which has recently declined. The Accumulation Trend Score is an indicator that shows whether Bitcoin investors are accumulating or selling. The score is currently at 0.21, indicating that investors are selling. The indicator calculates its value by considering balance changes in wallets and weighing them against the size of holdings. A value close to 1 indicates large entities or many small addresses are accumulating, while a value near 0 implies distribution or no buying. The chart shows that the Accumulation Trend Score was high during the last couple of months of 2024, indicating heavy buying. However, accumulation dropped towards the end of the year and has continued to decline this year. Glassnode also shared data on accumulation/distribution behaviors across various BTC cohorts, showing that "mega whales" holding over 10,000 BTC have been selling since September. The rest of the cohorts, including whales holding between 1,000 and 10,000 BTC, have also started selling recently. As long as the Accumulation Trend Score remains low, Bitcoin may continue its bearish trajectory, with its current price at around $93,900, down over 3% in the past week.