Once bitcoin reached $ 50,000 in February and noted there was weakness lurking in the market. This time, the little fish, and the whales are already accumulating BTC.

Through the indicator of the Participation Score in the bitcoin accumulation trend, a study led by the analytical firm Ecoinometrics explained how the bitcoin market had fortified itself since the price got to surpass the barrier of USD 50,000 in February of this year.

The indicator compares the accumulation trends of five cohorts of holders and sets a clear difference between the accumulation patterns of that moment and the current ones.

Ecoinometrics uses in this analysis the metric of the Participation Score in the trend of gathering bitcoin. This indicator studies groups of addresses, going from the little fish (addresses with less than 1 BTC) to the whales (addresses with between 1,000 BTC and 10,000 BTC), and it looks at whether or not, on average, they have been accumulating BTC in the last 30 days.

More Cohorts of Holders Accumulate Bitcoin

The study identifies the categories of holders that accumulate bitcoin. A low-value participation score receives its interpretation over the past 30 days most small groups of holders have been accumulating.

Instead, a high participation score means that almost all direction groups, from small fish to whales, are accumulating BTC, according to the study.

Although the mere detection of the addresses that accumulate bitcoins does not allow to predict the price immediately, the fact that most people gather BTC is perceived as a bullish sign, according to the study. This perception relies on both the resulting supply shortage and general market sentiment, the report says.

In this environment governed by market weakness, despite the rising price, any negative event, or association with fear, uncertainty, and doubt, was likely to result in negative price action, the report states.

The report points out that there is a suggestion about some weaknesses in the market. Ecoinometrics points out that it is not the first time that bitcoin has crossed this line since it did so in February and March of this year. However, the report reiterates that market conditions are different today.

The accumulation of BTC by a cohort of holders

From the study of each holder category, it is deduced if it is shedding its BTC or if it is accumulating. In the last two weeks, the emergence of contrast is getting registered, says the study. the author highlighted that addresses that handle less than 10 BTC are piling up satoshis. This situation gets evidenced by these cohorts in the mentioned period.

“The addresses that manage 10 to 1k BTC have become way more neutral,” says the study, as those two categories showed up. The whales have been accumulating more slowly.

By: Jenson Nuñez

LEAVE A REPLY

Please enter your comment!
Please enter your name here