The Bitcoin market is experiencing a period of indecision following its largest downtrend of the cycle. However, beneath the surface, on-chain data suggests a distinct shift towards HODLing and accumulation among digital asset investors.
According to Glassnode’s report on Aug. 13, markets are gradually rebounding from last week’s sell-off, with investors’ uncertainty reflected in every sense of the word. On-chain behavior analysis shows, however, that there is action toward holding through to assets, in particular among the larger wallet sizes normally associated with ETFs.
One such metric, the Accumulation Trend Score, gauges weighted balance changes across the market. It has hit the highest possible value of 1.0 over the past month. Therefore, extensive accumulation, compared to supply distribution, has been witnessed since Bitcoin’s all-time high in March.
Long-Term Holders Increase Bitcoin Holdings
LTHs also seem to have developed a new desire for HODLing; this class, which largely liquidated before the ATH, has increased its holdings by about 374,000 BTC over the past three months. This shows that its urge to accumulate Bitcoin has overcome the selling pressure among long-term investors so far.
Despite aggressive distribution from April to July, the spot price has managed to hold support above the Active Investor Cost Basis. This level, representing the average acquisition price of active coins, is a key threshold for investor sentiment.
The percentage of network wealth held by long-term holders started to increase again, despite intense sell-side pressure into the market ATH. That all sets the stage for further divestment should prices appreciate and growing unwillingness to sell at lower prices, suggesting a more patient and resilient holder base.
This can be view in the LTH Sell-Side Risk Ratio to hold at a lower level relative to the size of the asset than during the previous ATH breaks. This means that long-term holders tend to take relatively small-sized profits and possibly wait for much higher prices before they increase their pressure for distribution.
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