A handful of on-chain metrics are looking bullish for Bitcoin (BTC), according to the crypto analytics firm Glassnode.
Glassnode notes that Bitcoin’s accumulation trend score has been rising this year.
The accumulation trend score measures the relative size of entities that are actively accumulating Bitcoin. A score closer to one means that larger addresses are buying up BTC, while a score closer to zero means they’re either not accumulating or are selling the top crypto asset.
Says Glassnode,
“With Bitcoin price action continuing to climb towards the cycle baseline ($30,000), market participants have responded by aggressively accumulating coins.
This underscores a similarity in structure between the current cycle and 2018-19 cycle.”
Looking at Glassnode’s chart, it appears that BTC’s accumulation trend score is above 0.75, suggesting that the large entities are gobbling up the top crypto asset.
Glassnode is also looking at BTC’s transfer volume momentum metric, which aims to identify the prevailing trend for network activity. According to the analytics firm, BTC is witnessing a surge in transfer volume momentum, which indicates “improving network fundamentals.”
Additionally, Glassnode notes that the realized cap HODL waves metric, which shows how holders of different age brackets of Bitcoin spend their coins, indicates there is an ongoing transfer of wealth to short-term holders (STH). The transfer of BTC to short-term holders has historically marked reversal points for Bitcoin, according to the market intelligence firm.
“Isolating for short-term Holder age bands, we note the ongoing transfer of wealth to the STH cohort, typical of cycle transition points.”
BTC is trading at $27,817 at time of writing. The top-ranked crypto asset by market cap is up 0.16% in the past 24 hours.
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