The Accumulation Trend Score (ATS) is an indicator that reflects the relative size of entities that actively accumulate on-chain coins in terms of their Bitcoin holdings. The ATS metric represents both the entities balance size (their degree of engagement), and the amount of new coins they earned/sold over the past month (their balance change degree).
An ATS closer to 1 indicates that larger entities (or a large part of the network) are clustering in aggregate, and a value closer to 0 indicates that they are distributing or not clustering. This provides insight into the equilibrium volume of market participants, and their cumulative behavior over the past month.
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- Currently, the Bitcoin (BTC) network is seeing heavy distribution from all groups; This behavior was last seen after Luna’s collapse in mid-2022, circled below.
- This comes after heavy buying during the FTX crash in November 2022, where all the collectives saw significant value in the bitcoin price.
- The same behavior occurred after previous bear market bottoms in 2015, 2019, 2020, and 2022. Although distribution begins with investors taking profits, a reluctance to continue accumulating can emerge if investors express fear of a bull trap.
Significant Distribution in the Bitcoin Network of All Groups – A similar pattern occurs after bear market bottoms first appear on CryptoSlate.