Bitcoin reclaims $27k as accumulation turns to distribution

Bitcoin is back at $27,000 after recording a rally of close to 2% within a 24-hour run. Trading at $27.400, BTC recorded a 1.7% gain within 24 hours as of press time, with trading volume rising by 12%.

Bitcoin’s volatility levels are rather low now as the Bollinger bands converge to show lower volatility. The relative strength indicator also moves above its average line, signaling a possible bullish trend. The MACD indicator is also moving in the positive region.

BTC 24-hour chart source | TradingView You might also like: Bitcoin on-chain metrics suggest an early bull market

Whales shift bitcoin strategy

In a recent assessment of bitcoin’s accumulation trend score by Cohort, significant changes have been observed, indicating a shift in the behavior of different participant groups within the cryptocurrency market.

Notably, the largest holders of bitcoin, known as whales (with holdings exceeding 10,000 BTC), have transitioned from a phase of heavy accumulation to a more balanced state characterized by an equal inflow and outflow of tokens.

When assessing the #Bitcoin Accumulation Trend Score by Cohort, we note that the largest of Whales (>10K BTC) have transitioned from a regime of heavy accumulation to one of equally balanced inflows and outflows.

With all other major cohorts aggressively distributing coins, the… pic.twitter.com/mzoORrDyhs

— glassnode (@glassnode) May 17, 2023

While whales exhibit a more nuanced approach to their bitcoin holdings, the situation is quite different for other major holders in the market.

The analysis reveals that these cohorts actively distribute their coins, suggesting a broader trend of selling rather than accumulation. This transition among the whales carries implications for the overall market sentiment and potential price dynamics.

The shift from heavy accumulation to balanced flows indicates a more cautious approach by the largest bitcoin holders. It may suggest that these whales have reached a level of satisfaction with their existing holdings.

Source