Bitcoin (BTC) Accumulation Trend Score At Low Levels Despite Recent Upward Movements

While Bitcoin‘s recent upward movements were quite remarkable after struggling with bearish pressure for weeks, the flagship asset’s uptrend was short-lived

Bitcoin’s recent attempts to break above the $85,000 resistance band have met with limited success, leading to a slight pullback as the flagship asset’s uptrend appears to be fizzling out.

While the cryptocurrency encountered struggles with bearish pressure for several weeks, it managed to break free from the downward trend and test the crucial resistance zone. However, despite recent efforts, there was no sign of strong accumulation among investors, suggesting that the current rally might be nearing its peak.

According to on-chain data platform Glassnode, in its latest analysis, signals indicate that there is still no significant shift in trend despite BTC’s attempt to move above the key resistance.

According to the latest data from on-chain analysis firm, Bitcoin’s Accumulation Trend Score remains low at 0.5, even as the cryptocurrency faces persistent sellers in the market.

This measure, which tracks the overall activity of major market players in accumulating or distributing BTC, continues to signal that some investors are buying, but the overall trend indicates weak accumulation.

The analysis platform further noted that the trend score has remained below the 0.5 point for the past 58 days, signaling a relative distribution period.

The current streak of below-average accumulation is approaching the average length of distribution periods over a one-year time frame, indicating that it is still consistent with historical patterns.

The on-chain analysis platform noted that the average duration of distribution phases and accumulation cycles over the last 1 year was 65 days and 57 days, respectively. Overall, BTC was in relative accumulation above the 0.5 point for 170 days and in relative distribution below 0.5 for about 196 days.

Meanwhile, the periods of accumulation and distribution have alternated between 57 and 65 days. Given that the most current reading is at 0.9, the trend score shows that big entities are still in a net distribution regime and have not yet been confirmed that they are moving into accumulation. With whales and long-term investors showing less aggressive buying pressure, Bitcoin’s price could face an extended pullback to lower key support levels.

BTC Short-Term Holders In A Fragile Position

Short-term BTC holders have also been driven to a precarious position as the price fluctuates. Prior to the sudden drop on Monday, BTC briefly recovered its Short-Term Holder Cost Basis, but it is currently trading slightly below the level.

However, according to Glassnode, Bitcoin’s short-term holder Market Value to Realized Value (MVRV) is at 0.00, indicating a 1% paper decrease. This shows that STHs are still in a fragile position since their profitability is close to breakeven.

BTC’s short-term holder SOPR witnessed a decline during bearish price performances. The metric fell significantly below its quarterly median last week. However, it has since rebounded to its upper deviation band, which might signal renewed demand absorption and improve sentiment following a capitulation by short-term holders.