Bitcoin Accumulation Gradually Wanes, Trend Score Declines

Bitcoin ($BTC) is going through a significant drop in accumulation levels. Particularly, the $BTC accumulation is waning irrespective of the heightened price levels. As per the data from Glassnode, Bitcoin’s Accumulation Trend Score is declining to a great extent, indicating a minimized buying pressure posed by large cohorts. Hence, this muted accumulation highlights the risk of supply overhang in the case of a failure to resurge.

Bitcoin Accumulation Plunges Sharply Amid Cooled Whale Activity

In line with the exclusive market statistics, the Accumulation Trend Score of Bitcoin is presenting an alarming picture. The indicator visualizes the price action of the leading crypto token along with accumulation activity. Particularly, over the recent months, the Bitcoin accumulation has reportedly experienced a massive drop. This overall shift points out that the $BTC investors, especially the big entities, are reluctant to engage in aggressive accumulation.

Apart from that, the Accumulation Trend Score also serves as a prominent sentiment indicator. It often helps assess if long-term Bitcoin holders are building positions. An increased score usually displays robust conviction as well as bullish outlooks. On the other hand, a softening score, as is the current scenario, underscores risk aversion and hesitation. Keeping this in view, the decreased accumulation levels may make it difficult for the market to handle sell-side pressure, particularly if the short-term $BTC holders start taking profits.

Waning Institutional Activity Triggers Sustainability Concerns1

According to Glassnode , the ongoing Bitcoin accumulation lull could pave the way for a supply overhang. Thus, without renewed demand, $BTCcoins taking part in circulation may outcompete buying interest, specifically igniting price corrections. This cautious setting also reflects the macro uncertainty and sentiment shift. Although a few market participants are still active in the retail sector, the institutional flows seem subdued, presenting a decline in accumulation, raising sustainability concerns.