According to crypto analytics firm Glassnode, a handful of on-chain metrics are looking bullish for Bitcoin (BTC).
Glassnode notes that the value of Bitcoin’s accumulation trend has increased this year.
The accumulation trend score measures the relative size of companies that are actively accumulating bitcoin. A score closer to one means larger addresses are buying up BTC, while a score closer to zero means they are either not accumulating or are selling the top crypto asset.
says Glassnode,
“As bitcoin price action continues to climb towards the baseline of the cycle ($30,000), market participants have responded by aggressively accumulating coins.
This highlights a structural similarity between the current cycle and the 2018-19 cycle.”
Source: Glassnode/Twitter
Looking at Glassnode’s chart, it appears that BTC’s accumulation trend value is above 0.75, suggesting that the big companies are gobbling up the top crypto asset.
Glassnode also examines the momentum metric of BTC transfer volume, which aims to identify the prevailing trend for network activity. According to the analytics firm, BTC is seeing a surge in transfer volume, indicating “improving network fundamentals.”
Source: Glassnode/Twitter
Additionally, Glassnode notes that the realized cap HODL wave metric, which shows how holders of different age groups of Bitcoin are spending their coins, suggests that a continuous transfer of wealth to short-term holders (STH) is occurring. The transfer of BTC to short-term holders has historically marked turning points for Bitcoin, according to the market research firm.
“If we isolate the age groups of short-term holders, we find that wealth is continuously transferred to the STH cohort, which is typical of cycle transition points.”
Source: Glassnode/Twitter
BTC is trading at $27,817 at the time of writing. The top-rated crypto asset by market cap is up 0.16% in the last 24 hours.
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