Bitcoin Mega Whales move opposite to the rest of the market: Glassnode
On-chain data from Glassnode shows that the biggest Bitcoin whales have shown the opposite behavior of what other investors have done.
The Bitcoin market is currently observing a moderate distribution phase
According to data from the analysis company at the chain Glass node, the behavior of the biggest BTC whales has once again diverged from the rest of the market. The relevant indicator here is “Trend Accumulation Points”, which tells us whether Bitcoin investors are buying or selling.
There are mainly two factors that the calculation takes into account to find this score: the balance changes that take place in the holders’ wallets and the size of the investors making such changes. This means that the larger the investor makes a purchase or sale, the more weight they have in the trend accumulation points.
When the value of this metric is close to 1, it means that the larger owners in the sector are accumulating right now (or a large number of small investors are showing this behavior). On the other hand, the indicator has a value close to the zero mark which suggests that investors are currently showing a distribution trend.
This indicator is generally defined for the entire market, but can also be applied to specific investor segments. In the diagram below, Glassnode has shown the data for the Bitcoin Trend Accumulation Score for the various holder groups in the market.
The value of the metric seems to be red for most of the market right now | Source: Glassnode on Twitter
Here, the investors in the market have been divided into six different cohorts based on the amount of BTC they have in their wallets: under 1 BTC, 1 to 10 BTC, 10 to 100 BTC, 100 to 1000 BTC, 1000 to 10,000 BTC, and over 10 000 BTC.
From the graph above, it is visible that the trend accumulation points for all these groups had a value of around 1 at the bear market low following the November 2022 FTX crash, suggesting that the market as a whole engaged in some heavy buying at the time.
This accumulation continued until the rally came in January 2023, when market behavior began to change. The owners began to distribute in this period, and sold especially a lot between February and March. After this sharp split, the rally lost steam and the price plunged below $20,000.
However, these investors again began to accumulate as the price rebounded and the rally restarted. Although this time the accumulation was only moderate.
Interestingly, while the behavior of the market had been more or less uniform in the months prior to this new accumulation streak (meaning all the groups had bought or sold at the same time), this new accumulation streak did not have the largest of the whales (over 10,000 BTC group) participating . Instead, these huge investors went through a distribution phase.
Since Bitcoin broke above the $30,000 level in mid-April 2023, investors have once again sold and shown moderate distribution behavior.
Similar to the accumulation phase prior to this sale, the 10,000+ BTC whales have not joined the rest of the market; rather, they have aggressively accumulated and expanded their wallets. These holders seem to have decided to go in the opposite direction of the general market.
BTC price
At the time of writing, Bitcoin is trading around $28,900, up 1% in the past week.
BTC has declined below $29,000 again | Source: BTCUSD on TradingView
Featured image from Rémi Boudousquié on Unsplash.com, Charts from TradingView.com, Glassnode.com
