Key Insights:
- The overall Accumulation Trend Score has dropped to 0.26, remaining under 0.5 for several days.
- Bitcoin wallets holding from over 10,000 BTC to those containing less than 1 BTC have transitioned to distribution phases as market activity slows.
Details:
Sentiment in the cryptocurrency sector can change rapidly. Current data from Glassnode reveals that all Bitcoin wallets are undergoing a shift to distribution, with the Accumulation Trend Score (ATS) evaluated across various wallet sizes indicating a decline in accumulation strength.
This metric evaluates accumulation through entity size and Bitcoin volumes acquired in the last 15 days. A score that approaches 1 suggests accumulation, while a score nearing 0 indicates distribution.
At this time, all wallet groups, from significant holders owning over 10,000 BTC to smaller wallets with less than 1 BTC, appear to be in distribution mode, a notable reversal from just a week prior when all groups were in accumulation amid Bitcoin’s rise to more than $124,000.
The current distribution scenario reflects a wave of profit taking. Traditionally, Bitcoin has shown a pattern of price corrections shortly after reaching new peaks. The aggregate ATS is at 0.26 and has consistently stayed below 0.5 in recent days.
Bitcoin showed four months of consecutive green from April to July, but August typically witnesses decreased trading volume and activity. In the past, August has been marked by substantial corrections in the double-digit percentage range.
