Crypto Users Hoarding Bitcoin As Its Price Nears $30,000 - Bitcoin holders are actively hoarding this cryptocurrency that could help BTC continue to surge.

    The Accumulation Trend Score is an indicator that reflects the relative size of entities that are actively accumulating coins on-chain in terms of their BTC holdings. Accumulation Trend Score not only represents  the volume of coins bought or sold by holders, but also the wallet sizes of participants involved in the accumulation or distribution process.  

    A score close to 1 indicates that large entities or a significant number of small investors are hoarding BTC. On the other hand, a score approaching 0 shows that holders are distributing or not accumulating much at that time.

    A chart showing the trend in Bitcoin accumulation over the past few years shows that during the initial of the latest rally, the Accumulation Trend Score almost reached zero, indicating a large amount of Bitcoin has been distributed away. That means investors did not believe in the sustainability of this rally and wanted to secure their profits.

    Source: Glassnode

    However, the trend recently changed as Bitcoin price approached the $30,000 mark. Interestingly, the current rally looks to be following a pattern similar to the April 2019 bull run, which started at the bottom of the bear market and faced massive distribution in its early stages.

    With Bitcoin price approaching $30,000, the Accumulation Trend Score has also shifted towards accumulation. This price level happens to be the baseline of the current cycle, similar to what was seen in the 2018 – 2019 cycle.

    If the current rally follows the pattern of April 2019, the recent shift towards accumulation could be a positive signal for the price increase. At the time of this writing, Bitcoin is trading at around $28,116, marking a 4% increase from last week.

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