Bitcoin Retail Panic Sells—While ‘Mega Whales’ Swoop In To Buy The Dip

Source Bitcoinist

On-chain data shows the small Bitcoin holders have deepened their selloff recently, while the largest of investors have been ramping up their buying.

Bitcoin Accumulation Trend Score Shows Divergence Forming Among Holders

In a new post on X, the on-chain analytics firm Glassnode has discussed the latest trend in the Accumulation Trend Score for the various Bitcoin holder cohorts.

The Accumulation Trend Score is an indicator that basically tells us about whether BTC investors are accumulating or distributing. The indicator calculates its value not just by keeping track of the balance changes taking place in the wallets of the investors, but also by accounting for the size of the addresses.

When the metric’s value is greater than 0.5, it suggests that large investors (or alternatively, a large number of small investors) are buying. The closer the indicator is to the 1 mark, the stronger is this behavior.

On the other hand, the score being below 0.5 means the market is going through a potential phase of distribution. In this case, the extreme point lies at a value of zero.

In the context of the current topic, the version of the Accumulation Trend Score that’s of interest isn’t the one for the combined network, but rather the one that tracks the behavior separately for the various investor groups.

Addresses or holders have been divided into these cohorts on the basis of wallet size. Here is how the Accumulation Trend Score has changed for each of the groups over the past year:

Bitcoin Accumulation Trend Score

As displayed in the above graph, the Bitcoin Accumulation Trend Score saw a value close to the 1 level for most of the investor groups between November and January, implying strong accumulation was occurring. Alongside this buying, BTC enjoyed its bull run beyond the $100,000 level.

With the start of this year, though, a shift to selling took place, with the indicator achieving a value close to zero for all the cohorts in February. Naturally, the cryptocurrency saw a bearish reversal as a result of this distribution.

March saw the investors pull back a bit on their selling, but the net situation in the sector remained firmly that of distribution. From the chart, it’s visible that the holder behavior has been nearly uniform for most of the year so far, but recently, a divergence has become prominent.

Holders with less than 1 BTC, popularly known as retail investors, have deepened their distribution again, with the metric dropping under 0.2. On the other hand, investors on the exact opposite end of the spectrum, the largest of entities with more than 10,000 BTC, have shifted focus to accumulation, with the score nearing 0.6.

When bullish pressure started letting off for Bitcoin earlier, these ‘mega whales‘ were the first to start participating in a strong selloff. With this smart-money cohort now once again doing something different from the rest of the market, it’s possible that another trend shift may be ahead for the asset.

BTC Price

Bitcoin has opened April with some recovery as its price has gone up to the $84,900 level.

Bitcoin Price Chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Trump vs. Powell: Bullish or Bearish for Bitcoin?The core of the Trump-Powell clash revolves around interest rates. Trump wants the Fed to cut rates swiftly, while Powell remains cautious and is in no hurry to make adjustments. Changes in interest rates affect not only traditional financial products and but also alternative assets like Bitcoin.
Author  TradingKey
13 hours ago
The core of the Trump-Powell clash revolves around interest rates. Trump wants the Fed to cut rates swiftly, while Powell remains cautious and is in no hurry to make adjustments. Changes in interest rates affect not only traditional financial products and but also alternative assets like Bitcoin.
placeholder
EUR/USD declines as US Dollar gains on hopes of easing US-China trade warEUR/USD trades lower around 1.1350 during European trading hours on Friday. The major currency pair weakens due to a recovery move in the US Dollar (USD) on hopes of an improvement in trade relations between the United States (US) and China.
Author  FXStreet
13 hours ago
EUR/USD trades lower around 1.1350 during European trading hours on Friday. The major currency pair weakens due to a recovery move in the US Dollar (USD) on hopes of an improvement in trade relations between the United States (US) and China.
placeholder
Bitcoin Metrics on Binance Show Shift That Could Precede Market SqueezeBitcoin has seen a modest decline in price after climbing above $94,000 earlier in the week.
Author  NewsBTC
13 hours ago
Bitcoin has seen a modest decline in price after climbing above $94,000 earlier in the week.
placeholder
Gold edges down amid clash over status of US-China trade talksGold price is on the back foot on Friday, almost erasing all of Thursday’s gains, and looks set to close off this week in the red.
Author  FXStreet
13 hours ago
Gold price is on the back foot on Friday, almost erasing all of Thursday’s gains, and looks set to close off this week in the red.
placeholder
Forex Today: US Dollar regains traction on renewed optimism about easing US-China tensionsFollowing Thursday's decline, the US Dollar (USD) gathers strength against its rivals early Friday as markets assess the latest headlines surrounding the US-China trade relations.
Author  FXStreet
14 hours ago
Following Thursday's decline, the US Dollar (USD) gathers strength against its rivals early Friday as markets assess the latest headlines surrounding the US-China trade relations.
goTop
quote