Bitcoin macro analyst TechDev says that Bitcoin’s current behavior suggests accumulation rather than distribution. Covered: Bitcoin Accumulation Trends BTC Reaching An Inflection Point Despite the widespread bearish consensus in the conversation online, Bitcoin macro analyst TechDev is going against the grain to show why he thinks Bitcoin is being accumulated rather than distributed right now. […] The post Bitcoin Is Flashing Accumulation — Not Distribution, Says Macro Analyst appeared first on CryptosRus.

Bitcoin Is Flashing Accumulation — Not Distribution, Says Macro Analyst

Bitcoin macro analyst TechDev says that Bitcoin’s current behavior suggests accumulation rather than distribution.

Covered:

  • Bitcoin Accumulation Trends
  • BTC Reaching An Inflection Point

Despite the widespread bearish consensus in the conversation online, Bitcoin macro analyst TechDev is going against the grain to show why he thinks Bitcoin is being accumulated rather than distributed right now. What’s making him so confident?

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Bitcoin Accumulation Trends

To back up the analyst’s claims, TechDev first points to Glassnode’s recently-added Accumulation Trend Score (ATS), along with Entity-adjusted Dormancy Flow (EADF).

Based on the last two impulse waves higher, he notes that consistent on-chain behavior suggests that Bitcoin has ended its correction phase and has entered the accumulation phase.

As highlighted by yellow boxes, the final legs down in the market cycle were followed up with heavy accumulation by large entities (reflected by the ATS).

These drawdowns brought the EADF into the green zone, which has historically marked major Bitcoin bottoms. Upon exiting the green zone, a “coil” forms, during which the ATS ranges in the mid to upper levels.

Together, these metrics form another set of data points that suggest we are in the bottoming zone of another year-long Bitcoin correction.

Lastly, take note of how the previous two impulse tops (July 2019 and January 2021) reached the same EADF level. If/when the next impulse wave begins, this level is certainly one to watch to indicate when the next local top could be printed.

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BTC Reaching An Inflection Point

Taking a look closer at today’s price chart, let’s analyze how Bitcoin has been behaving.

At the time of writing, BTC is trading at $39,102.

No one can foresee the future, but if TechDev suggests Bitcoin is in accumulation rather than distribution, then he likely expects the current weekly trend line to hold up as support.

This weekly trend line has served as an impenetrable wall for bears throughout 2021. Bitcoin is yet again sitting right on this support line, so the next moves will be quite telling as to whether TechDev’s analysis holds true or if fresh lows are coming for Bitcoin and the crypto markets.

Also take note of the relative strength index (RSI), which measures the overbought and oversold conditions of an asset. On the weekly timeframe, the RSI is forming a falling wedge pattern, suggesting consolidation before another spring back to the upside. We’ll have to wait and see if the RSI revisits the bottom support of the wedge or if it’s finally time for a breakout.

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For more TechDev, make sure to check out his newsletter. Also, follow him on Twitter for the latest, greatest technical analysis.

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