Bitcoin Accumulation Trend Score Has Declined Recently
As per the latest weekly report from , the accumulation trend score shows that investors have been distributing Bitcoin recently. The “accumulation trend score” is an indicator that measures whether investors have been buying or selling within the last 30 days.For the calculation of the score, the metric accounts for both the aggregate balance changes in the wallets of the investors and the size of their wallets. The indicator puts a higher weightage on large entities like whales and institutional investors.
Thus, whenever the indicator’s value is close to 1, it means large entities like these are accumulating right now (or alternatively, a huge number of small investors are accumulating). On the other hand, values of the score near zero imply large entities are distributing currently, or more simply, they are just not accumulating.
Now, here is a chart that shows the trend in the 7-day moving average (MA) Bitcoin accumulation trend score over the past few years:
Looks like the 7-day MA value of the metric has fallen in recent days | Source:As displayed in the above graph, the Bitcoin accumulation trend score has recently declined in value as the rally has gone on and has assumed distribution values (colored in shades of red/orange and marked with a ‘D’ under the curve). The indicator’s value is now below 0.25, which means that large entities have been participating in a decent amount of selling in recent days, taking advantage of the current profit-taking opportunity.
A rally that the current one is reminiscent of is the April 2019 price surge, which was also a rally that took Bitcoin out of the bottom discovery phase of the bear market of that cycle.
BTC Price
At the time of writing, Bitcoin is trading around $21,800, down 5% in the last week.
The value of BTC seems to have gone stale since the decline earlier in the week | Source:
