Data Show Long-Term Bitcoin Investors Are Accumulating… Right Now!
In the face of being underwater on some BTC positions, On-chain data show long-term holders have continued to accumulate Bitcoin around $30k. Typically, bear markets (which Bitcoin is technically in) will see a massive outflow of short-term investors, with longer-term investors seeing lows and weak-hand-selling as a buying opportunity.
Now, according to a report from Glassnode, Bitcoin “HODlers” (or long-termers) appear to be “doubling down as prices correct below $30k.”
Unlike previous notable BTC selloffs, this current one has yet to entice weak hands back into the market, Glassnode said. However, according to the Bitcoin Accumulation Trend Score (BATS), contrarian investors and HODlers are seeing the current BTC price as an accumulation point.
Glassnode, defines the BATS as “an indicator which reflects the relative size of entities that are actively accumulating/distributing coins on-chain in terms of their BTC holdings.”
A score closer to 1 means investors have been accumulating.
While a score closer to zero means there has been little accumulation, or that there’s been selling.
The BATS has returned to 0.9 (nearly 1) for the past two weeks, indicating heavy accumulation.
The Glassnode report notes, “Unless significant coin redistribution occurs, we can therefore expect this supply metric to commence climbing over the course of the next 3-4 months, suggesting HODLers continue to gradually soak up, and hold onto supply.”
Should this three-to-four-month trend occur, it may trigger FOMO in the market, with weak-hands jumping back in as new retail buyers get in for the first time…
Potentially driving BTC to new annual highs.
Read more about the BTC accumulation, and the BATS indicator, HERE