- Bitcoin holders are moving towards HODLing and accumulation after months of distribution pressure.
- Record High Accumulation Trend Score: ATS has surged to 1.0, with over 374,000 BTC added to long-term holder status in the last three months.
- Positive LTH Supply Change: Long-term holders are now favoring holding, as indicated by a positive shift in the seven-day change in LTH supply.
- Easing Sell-Side Pressure: Spot market sell-side pressure is easing, with potential for recovery if the Cumulative Volume Delta turns positive.
According to a recent report by Glassnode, there has been a notable shift in the behavior of Bitcoin holders. Following multiple months of heavy distribution pressure, Bitcoin holders have now reached out to a renewed inclination for HODLing and accumulation.
Bitcoin Holders Shift to HODLing After Distribution Pressure
Recent activity in spot markets has continued to show a structural selling bias, although this is beginning to lift. A much greater proportion of Bitcoin’s network wealth, relative to previous ATH breaks, is now in the hands of the LTHs. This is a strong signal of conviction among Bitcoin investors.
As the market bounces back gradually from the sell-off of last week, investors of digital assets are treading through unfamiliar territory. According to on-chain data, though, there is a clear accumulation trend building.
The prolonged period of supply-to-distribution ratio of March retrogrades into the ATH in the market. Recently, however, there are signs that this trend is reversing, in fact, among large wallets, often linked to exchange-traded funds (ETFs) showing signs of renewed accumulation.
Accumulation Trend Score Hits Record High
The Accumulation Trend Score (ATS) has just reached its peak value so far at 1.0, flashing a bright-green light of a strong accumulation period over the last month. Long-Term Holders. increasingly favor to HODL, with over 374,000 BTC. already migrating into an LTH status in the last 3 months.
The seven-day change in LTH supply further supports this observation. Despite heavy distribution during the ATH run-up, LTHs are now showing a predilection for holding, evidenced by a shift back to positive territory in this metric.
Evaluating the spot market through the Cumulative Volume Delta (CVD) metric, a persistent net sell-side pressure since the formation of the ATH is revealed. This negative CVD bias was witnessed hovering between -$22 million and -$50 million over the past two years. On the other hand, an adjusted CVD metric shows potential for recovery on its way back to positive values.
Recent sideways price action has slowed LTH distribution, stabilizing and, more recently, increasing their share of network wealth. This patience and reluctance to sell at lower prices indicate that holder-base resilience exists. The LTH Sell-Side Risk Ratio remains comparatively low versus past ATH breaks, indicating long-term holders are looking for higher prices before materially increasing distribution pressure.
However, despite all the turbulence of the markets, Bitcoin’s long-term holders show strong conviction and accumulation. This means that a huge percentage share of network wealth held by investors is coupled with their immunity to panic selling in order to underline a patient and resilient outlook amidst current market fluctuations.
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