On-Chain Metrics that signal a new cycle transition for Bitcoin, according to Glassnode
A handful of on-chain metrics look bullish for Bitcoin (BTC), according to crypto analytics firm Glassnode.
Glass node notes that Bitcoin’s Accumulation Trend Score has been rising this year.
The Accumulation Trend Score measures the relative size of entities actively accumulating Bitcoin. A score closer to one means larger addresses are buying up BTC, while a score closer to zero means they are either not accumulating or selling the top crypto asset.
says Glassnode,
“With Bitcoin price action continuing to climb towards the cycle baseline ($30,000), market participants have responded with aggressive coin accumulation.
This underlines a similarity in structure between the current cycle and the 2018-19 cycle.”
Looking at Glassnode’s chart, BTC’s Accumulation Trend Score appears to be above 0.75, suggesting that the major units are gobbling up the top crypto asset.
Glassnode also looks at BTC’s momentum metric for transfer volume, which aims to identify the prevailing trend of network activity. According to the research firm, BTC is witness an increase in transfer volume momentum, indicating “improvement in network fundamentals.”
In addition, Glassnode notes that the realized cap HODL waves metric, which shows how holders of different age groups of Bitcoin spend their coins, indicates that 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 Holders’ age cohorts, we note the ongoing transfer of wealth to the STH cohort, typical of cycle transition points.”
BTC is trading at $27,817 at the time of writing. The top-ranked crypto asset by market capitalization has risen 0.16% in the past 24 hours.
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