Bitcoin was down 1.88% to $23,987 after trimming earlier gains

by George Georgiev
7 ways to make with crypto

Bitcoin was down 1.88% to $23,987 after trimming earlier gains

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

According to Glassnode, the latest Bitcoin rally seems to be showing signals of weaker accumulation, as seen in the Bitcoin accumulation trend score.

“The Bitcoin Accumulation Trend Score has started to soften during this rally. This follows a near-perfect two months of aggressive balance increases after the LUNA collapse and again in June, primarily driven by the Shrimp and Whale cohorts,” Glassnode wrote alongside a Bitcoin accumulation trend chart score.

According to the on-chain analytics firm, the metric, which measures between 0 and 1, has softened back to equilibrium levels, suggesting a balance between accumulation and distribution. If the accumulation trend is any indication, this may be a concerning sign for the Bitcoin price, as it might suggest further lackluster price activity with buyers and sellers on par.

The relative size of entities that are actively accumulating and distributing coins on-chain in terms of their Bitcoin holdings is reflected by the accumulation trend score indicator. The Accumulation Trend Score’s scale reflects both the entity’s balance (also known as its participation score) and the number of new coins it has purchased or sold over the previous month (their balance change score).

The indicator recording values close to 1 indicate that investors are accumulating with their balances increasing. However, the indicator showing values near 0 may suggest that the market pattern remains one of net distribution.

Bitcoin price action

The Bitcoin and digital asset markets responded strongly to the July U.S. consumer-price inflation data released on Wednesday, as Bitcoin traded toward the $25K level once more. The core CPI was unchanged with an increase of 5.9%, compared with the expected 6.1% growth, a relief for markets. However, at the time of publication, Bitcoin was down 1.88% to $23,987 after trimming earlier gains. The lead cryptocurrency was up 3.48% on the week.

Another positive development for Bitcoin regards the announcement of the largest asset manager in the world, BlackRock, making a significant foray into cryptocurrency markets by introducing its first-ever investment product directly in Bitcoin.

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