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Bitcoin declined by 8.42% on the weekly charts, fueling a hike in bearish market sentiment Accumulation trend score nearing 0 could have implications for the cryptocurrency Over the past few months, Bitcoin has seen some extreme volatility on the price charts. While 2024 has seen BTC hit a record high of $73k and greater market favourability since the launch of ETFs, it has also seen higher volatility. At the time of writing, BTC was trading at $54,239 after an 8.42% decline over the past week. And yet, it is still showing some signs of life with a recent hike in trading volume. In fact, figures for the same surged by 63.13% to $48.6 billion over the last 24 hours. What does this mean for BTC’s market outlook over the short and long term though? Can Bitcoin fully recover now? Well, according to popular crypto analyst Ali Martinez’s suggestion, BTC may be seeing reduced participation. He made this assertion by citing the declining accumulation trend score. Market sentiment analysis According to Martinez, the accumulation trend score is nearing 0 right now. This means that market participants are either distributing or not accumulating BTC. Source: X In context, the accumulation trend score reflects the relative size of entities that are actively accumulating coins on-chain in terms of BTC holdings. A value close to 1 suggests that participants are accumulating coins. A value closer to 0 indicates participants are distributing their holdings. Thus, when the accumulation trend score flashes 0, it suggests no buyers from any cohort and implies distribution. Every time BTC hits a low in a bear cycle, it sees a hike in accumulation as investors buy the dip. However, after the bear market cycle persists, a lack of accumulation occurs as they lack confidence in the cycle. Based on this…

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Filed under: News - @ September 8, 2024 2:06 am