Bitcoin Accumulation Trend Scores Increased Significantly for All Wallet Categories in November

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Entering the second week of November, the trend is accumulation Bitcoin (BTC) across all wallets becomes clearer. Bitcoin’s cumulative trend score is almost at its maximum. This is a sign of very positive mood.

All wallet categories achieved high Bitcoin accumulation scores in November

Since the last days of October, BeInCrypto has mentioned signs of accumulation through the Bitcoin Accumulation Trend Score indicator.

Glassnode developed this indicator to assess which wallet categories are experiencing strong accumulation trends. Large wallets (whales/sharks) will have greater weight in predictions. The darker the color becomes blue, the higher the cumulative intensity.

On-chain Bitcoin accumulation trend scoring indicator for 2023. Source: glassnode.
  • The above data clearly shows that all wallet categories from below 1 BTC to over 10,000 BTC are accumulating and the cumulative trend score is approaching level 1, which is the highest score. The dark green color spreads evenly and has lasted for the last few weeks.
  • Many observers believe this data confirms that market confidence has been restored. Glassnode said in a recent report that new beliefs have changed the behavior of most market participants.

The latest report from Coinshares also stated that the market recorded $261 million in positive cash flow from cryptocurrency investment funds last week. Most of the money is spent in Bitcoin. This is the second consecutive week that Coinshares has reported a yearly high in cash flow data.

What happens when Bitcoin’s accumulation trend points reach highs?

The above data only summarizes the 2023 year-to-date time period, and this is the first time in a year that the cumulative trend score has turned dark green so uniformly.

To see it more objectively, try to look back at when this phenomenon occurred.

On-chain Bitcoin accumulation trend scoring indicator for 2022. Source: glassnode.
  • Between mid-2022 and early 2023, there were two simultaneous increases in Bitcoin holdings. The first time was in July 2022, around the time of the LUNA collapse. The second time was after FTX collapsed and BTC fell below $16,000 at the end of 2022.
  • Intuitively, when simultaneous accumulation occurs, the price will not necessarily rise subsequently. At times the price could drop another 50%, as happened to investors who bought BTC in July 2022. Sometimes, that’s the bottom of the market, as investors bought in late 2022.

If we look further back in time, the data shows a period of strong accumulation right after Bitcoin was sold off at its $69,000 peak. This means that those who bought there because they were overly excited and confident have not yet “come back to shore.”

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