- Bitcoin has remained below the $60,000 price range.
- Accumulation has increased after months of distribution.
Bitcoin [BTC] is consistently trading below the $60,000 mark, and recent data indicates that several entities have started accumulating it during this phase of price consolidation.
This strategic accumulation suggested that some investors viewed the current price range as a favorable entry point. Despite this accumulation, there was a noticeable decline in wallet activity over the same period.
Bitcoin enters the accumulation phase
AMBCrypto’s analysis of Bitcoin’s trend score Glass junction indicated a remarkable turnaround in market behavior.
The trend score, which stood at 0.4 at the time of writing, marked a significant shift, indicating that entities have started accumulating BTC after a distribution period.
This increase in the trend score, while not yet at 1, signaled a move toward more aggressive accumulation. Furthermore, this was the first time since April that the trend score reached this level.
Source: Glassnode
The Accumulation Trend Score is particularly insightful because it takes into account not only the amount of BTC that entities buy or sell, but also the size of the entities’ balances.
A score approaching 1 implies that larger entities are actively accumulating BTC, a bullish signal. Conversely, a score near 0 indicates that these entities are dividing their assets or refraining from further accumulation.
This upward movement in the trend score could potentially indicate growing confidence among larger investors.
Such behavior often precedes a broader market recovery, as significant accumulation phases by large companies can reduce market supply and help establish a stronger level of price support.
Active Bitcoin addresses are falling
While there has been a noticeable increase in Bitcoin accumulation among larger entities, the number of daily active Bitcoin addresses told a different story.
According to an analysis of the active addresses graph on Glassnode, there has been a sharp decline in activity recently.
However, despite the fluctuations, the number of active addresses has largely remained within the 600,000 range. At the time of writing, the number was approximately 669,000.
Source: Glassnode
This decline in the number of active addresses amid increasing accumulation could suggest a number of possible scenarios. First, larger investors could hold their BTC for the long term, reducing transaction frequency.
It could also indicate a cautious broader market, where fewer individuals and entities are engaging in trades, possibly waiting for clearer signals before entering or exiting positions.
BTC is trading below $60,000
According to the latest data, Bitcoin was trading at around $57,151, showing a slight decline of less than 1% on a daily time frame. The price movement on the chart indicated that BTC was in a bearish trend.
Read Bitcoin’s [BTC] Price forecast 2024-25
This was evident from its position below the main moving average (yellow and blue lines).
Source: TradingView
Bitcoin’s position, relative to the neutral line on the Relative Strength Index (RSI) at the time of writing, further supported this bearish outlook.