Bitcoin Enters Strongest Accumulation Phase Since January as BTC Price Passes $110K
Bitcoin (BTC) has entered a robust accumulation phase, a phenomenon not witnessed since January, signifying a resurgence of bullish sentiment. This positive trend coincides with BTC trading above $110,000, representing an 18% surge over the past month. Data from Glassnode reveals that its Accumulation Trend Score has reached its peak of 1.0, indicating widespread and aggressive accumulation across all investor cohorts, regardless of their existing BTC holdings.
This metric meticulously assesses the buying pressure exerted by various wallet sizes, considering both their current holdings and recent acquisitions (over the past 15 days). To ensure accuracy, exchanges and miners are excluded from the calculation. The current accumulation wave, initiated in early May, was spearheaded by whales possessing over 10,000 BTC. As the price ascended, smaller holders joined the accumulation trend, amplifying the overall buying pressure.
This marks a dramatic shift from the January-to-April period, characterized by widespread divestment as BTC plummeted from its then-record high of $109,000 to lows around $75,000. The renewed buying pressure is corroborated by robust activity in the options market. CoinDesk Research highlights substantial bullish positions, with the June expiry $300,000 strike call option emerging as the most popular, boasting a notional value of $620 million. An additional $420 million is concentrated around the $200,000 strike.
Historically, Bitcoin has often experienced price corrections following all-time highs due to profit-taking. However, established assets such as the S&P 500 and gold frequently exhibit extended rallies after reaching peak values. If Bitcoin mirrors this mature asset behavior, it could signal the commencement of a sustained bull market—a possibility closely monitored by market participants. The confluence of strong accumulation across all investor groups, substantial bullish options positions, and the potential for Bitcoin to deviate from its historical post-ATH pattern suggests a significant shift in market sentiment and the possibility of a prolonged upward trend.
