Bitcoin accumulation sees slowdown amid August market downturn
Quick Take
The Accumulation Trend Score, created by Glassnode, offers a detailed breakdown of the cryptocurrency acquisition behavior of different entity wallet cohorts. The algorithm calculates this score by evaluating the size of these cohorts and the quantity of Bitcoin they amassed during the last fortnight. A score closer to 1 implies that the entities in that cohort primarily accumulate coins, while a score nearing 0 suggests a predominant distribution of coins within the cohort.
Bitcoin has dropped roughly 11% in August, hovering around $26,000. However, the Accumulation Trend Score indicates a marked paucity in accumulation from any cohort. This observation is supported by the visualization’s red hue, signifying that most cohorts were distributing coins rather than accumulating. It’s important to note that certain entities, including exchanges and miners, are excluded from this calculation to ensure an unbiased evaluation of the market sentiment amongst different cohort participants.
The stagnation in the accumulation trend, reflected in the distribution-dominant behavior of the cohorts, underscores the market’s conservative stance in Bitcoin trading during August.
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