The post Bitcoin Holders Return To Accumulation, Why This Is Bullish appeared on BitcoinEthereumNews.com.

The latest insights from Glassnode’s “Week Onchain” newsletter reveals a major shift in Bitcoin market dynamics as long-term holders (LTHs) and large investors appear to be resuming a pattern of accumulation. This trend marks a departure from the extensive distribution observed earlier this year, offering a potential bullish outlook for Bitcoin, despite the broader market’s ongoing volatility. The Bullish Arguments For Bitcoin The Bitcoin market has been characterized by a challenging environment over recent months, marked by significant distribution, especially following the all-time high (ATH) set in March 2024. This distribution phase, which saw active participation from wallets of all sizes, is now showing signs of reversal. Particularly noteworthy is the behavior of large wallets, often associated with institutional investors and exchange-traded funds (ETFs), which are now shifting towards accumulation. The Accumulation Trend Score (ATS), a metric that evaluates weighted balance changes across the market, has reached its maximum value of 1.0, signaling significant accumulation over the last month. This uptick in accumulation is also reflected in the activity of Long-Term Holders (LTHs), who, after a period of heavy divestment, have added approximately 374,000 BTC to their holdings over the past three months. Total supply held by long-term holders | Source: Glassnode LTHs, who play a crucial role in the Bitcoin ecosystem, are once again expressing a strong preference for holding their coins. The 7-day change in LTH supply has returned to positive territory, underscoring a reduced propensity for selling and an increased focus on accumulation. Despite the aggressive distribution from April to July, Bitcoin’s spot price has managed to stay above the Active Investor Cost Basis, a critical threshold that delineates bullish and bearish investor sentiment. Long/Short-Term Holder Supply Ratio | Source: Glassnode “The market’s ability to find support near this level speaks to underlying strength,” the report notes,…

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Filed under: News - @ August 14, 2024 8:30 am