On-chain analytics firm Glassnode has highlighted how Bitcoin has only seen a relatively thin accumulation band emerge during the recent consolidation period.
Bitcoin STH CBD shows accumulation remains thin
In a new after on The CBD here refers to an indicator that tells us about the amount of supply purchased at the different price levels that BTC has visited in its history.
The short-term holders’ (STHs) CBD tracks this specifically for the supply purchased in the last 155 days. The short time frame means that supply clusters on the indicator always thin out over time, either by coins moving from them to other price levels (regaining their cost base there) or by growing into the Long-Term Holder Cohort (LTH), beyond the 155-day mark.
Here is the chart shared by Glassnode showing how the Bitcoin STH CBD has changed over the past year:
As shown in the chart above, the Bitcoin STH CBD has gained a large supply cluster at the November price lows, indicating that a notable amount of new accumulation has occurred in response to the market crash.
This dense supply zone then acted as a support buffer for the assets and helped stabilize them in a phase of consolidation. But eventually, the cryptocurrency’s bearish momentum returned and the price plummeted deeply below the cluster. This means that all tokens that are part of it have gone underwater.
In addition to the strong supply zone at the bottom of the range, the consolidation phase of November-January has also ensured that some higher levels are filled with supply. This accumulation was not as strong as at the low point, but nevertheless showed that coins were actively changing hands.
Recently, Bitcoin has stabilized in a new phase of sideways movement, but the chart shows that this time there has been neither a strong dip-buying reaction nor a significant supply cluster build-up as consolidation continued.
That said, buying hasn’t been completely absent, with some of the supply within the zone starting to find its price base. “An accumulation cluster is forming in the $62,000 to $72,000 range,” Glassnode said. “However, its intensity is modest compared to previous phases that preceded sustained expansions.”
It now remains to be seen how the offering will develop in the near future. For now, the basis it provides remains thin for a medium-term outbreak, the analytics firm said.
BTC price
At the time of writing, Bitcoin is trading around $71,100, up almost 5% in the past week.