Summary
- Glassnode reveals a return to hodling and accumulation for Bitcoin.
- BTC is now trading above $58,000.
Glassnode reveals that Bitcoin sees a return to holding and accumulating.
According to their weekly newsletter, Glassnode points out that following a few months of relatively heavy distribution pressures, Bitcoin holders’ behavior seems to be rotating back towards holding and accumulating coins.
Spot market activity shows that there has been a net bias towards sell-side pressure, and this has not subsided yet.
Glassnode compared the previous ATH breaks in the past cycles and said that there is currently a relatively large percentage of network wealth held by the Long-Term Holder cohort.
On-chain conditions speak to an undertone of high conviction among the Bitcoin holder base.
Holding Trend Emerges
The crypto market recovered following the August 5 decline and when analyzing the on-chain response of investors to market conditions, there’s an emerging trend of holding at the moment.
Glassnode notes that the supply distribution trend shows signs of reversal, especially for the largest wallet sizes associated with ETFs. These seem to be returning to a regime of accumulation.
The Accumulation Trend Score (ATS) metric assesses a weighted balance change across the market. The metric suggests a shift towards the accumulation dominant behavior.
The ATS recorded its highest possible value of 1.0, suggesting significant accumulation during the past month.
Long-term holders (LTH) returned to a holding preference with a total volume of over 374,000 BTC migrating into LTH status over the past 3 months.
Glassnode finalized the newsletter stating that despite challenges and choppy market conditions, LTH Bitcoiners remain steady in their holding conviction, with enough evidence that they are ramping up accumulation behavior.
According to them, an elevated percentage of Bitcoin network wealth is held by this investor group relative to previous cycle ATH breaks, which suggests that there is a degree of investor patience on display, waiting for higher prices.
Also, the lack of panic selling among this cohort highlights the resilience of their aggregate conviction.
Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading above $58,000.