Bitcoin Experiences Unusual Bullish Indication, Yet with Some Conditions
In the recent 15-day period, a significant trend has emerged in the Bitcoin market. The simultaneous accumulation by both small and large Bitcoin holders, as indicated by the Trend Accumulation Score from Glassnode, suggests a robust foundation for price support and potential upward price momentum.
The Trend Accumulation Score is a key on-chain metric used by Glassnode to quantify whether Bitcoin holders are accumulating or distributing. It weighs the balance changes in wallets alongside wallet sizes, giving larger entities more influence. Recent data shows the Score moving towards accumulation across all wallet size cohorts, especially shrimps (0-1 BTC), whales (≥1,000 BTC), and mega whales (≥10,000 BTC).
Small holders (0-1 BTC) increasing their holdings often signals retail investor confidence and new inflows into Bitcoin, usually an early sign of positive market sentiment. Ultra-large holders (>10,000 BTC) accumulating is interpreted as strong institutional or "smart money" confidence, as these entities typically move large amounts strategically and hold long-term positions.
The combined increase at both ends of the wallet size spectrum, alongside a rising Accumulation Trend Score, suggests a robust foundation for price support. This broad-based accumulation reflects growing confidence and a bullish sentiment toward Bitcoin’s price prospects, often signaling potential upward momentum in the market.
During the same period, Bitcoin experienced a pullback, going down from around $117,000 to about $110,000 at the end of July. Interestingly, both casual retail wallet holders and treasury-scale players responded to this dip by buying consistently across the entire 15-day period.
While the future direction of the energy observed during the dip (whether it will continue or run out) is still uncertain, the Trend Accumulation Score provides a reliable indicator of market sentiment shifts. As it smooths behavior over about a 15-day period, it reflects sustained, genuine trends rather than short spikes.
In addition, the number of wallets holding between 1 BTC and 100 BTC did not show significant commitment during the recent 15-day period, with some adjusting their exposure and others remaining unchanged. On the other hand, the number of wallets holding more than 10,000 BTC has increased significantly over the last 15 days, according to Glassnode data.
Notably, Michael Saylor, in a reference to the movie "Fight Club," urged not to sell Bitcoin. This call to action underscores the growing conviction in Bitcoin’s potential for continued price strength and reduced likelihood of significant selling pressure in the near term.
- The Trend Accumulation Score, an on-chain metric from Glassnode, indicates a strong market sentiment towards Bitcoin, as both small retail wallet holders and large institutions are accumulating, suggesting potential upward price momentum.
- The recent pullback in Bitcoin's price from around $117,000 to about $110,000 was met with consistent buying by both small and large holders, which reflects growing confidence in Bitcoin’s price prospects.
- During the same period, there was an increase in the number of wallets holding more than 10,000 BTC, a sign of strong institutional or "smart money" confidence, as these entities typically hold long-term positions.
- Michael Saylor's call to not sell Bitcoin underscores the growing conviction in Bitcoin’s potential for continued price strength and reduced likelihood of significant selling pressure in the near term, reflecting the bullish sentiment towards the crypto market.
