Bitcoin Investors Quiver As Accumulation Trend Nears Zero

Semilore Faleti

9 months ago

3 mins read

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September has started with significant losses for the Bitcoin market after a price decline of 9.16% occurred in the last week based on data from CoinMarketCap. During this period, the price of the largest cryptocurrency has dipped below $53,000 reaching a price low last seen in early August. Interestingly, despite Bitcoin’s low prices, investors are showing an unusual drop in buying interest.

Investors Hold Back On Bitcoin Accumulation – What Could Be Behind It?

In an X post on Friday, Ali Martinez noted that the Accumulation Trend Score (ATS) for Bitcoin was nearing zero. For context, the ATS measures the balance between accumulation and distribution activities in the Bitcoin market. As explained by Martinez, a score nearing 0 suggests that BTC investors are either offloading their holdings (distributing) or actively purchasing (accumulating) the premier cryptocurrency.

This trend, which represents a decline in buying interest, can be interpreted as unusual amidst Bitcoin price loss, which provides an opportunity for token accumulation at lower prices using dollar cost averaging strategies. A possible reason for this decline in ATS could be investors believe the BTC market is yet to bottom out, which will provide an attractive point of entry.

Interestingly, co-founder of Bitmex, Arthur Hayes, has predicted Bitcoin could likely fall below $50,000 this weekend amidst its present downtrend. However, Hayes has provided no specific support level for the crypto asset.

What’s Next For Bitcoin?

Generally, Bitcon’s bearish start to September is largely unsurprising following the token’s previous performances where it recorded an average loss of 4.78% in the last 11 years. With a decline of nearly 10% in the first week, it is possible Bitcoin will experience a total double-digit loss by month’s end as in 2014 and 2019.

However, the latest data from Non-Farm Payroll shows an increase in US jobs by 142,000 as well as an employment rate of 4.2%. Based on these figures, Citi analysts have previously predicted the US Federal Reserve could implement a 25 to 50 basis points rate cut at its meeting on September 18.

If such a prediction proves true, Bitcoin could receive a price boost in the final weeks of September, leading into October, when the crypto market leader is expected to produce a double-digit price gain according to historical price data.

At the time of writing, Bitcoin was trading at $53,855 with a 4.13% decline in the last 24 hours. Meanwhile, the asset’s daily trading volume is up by 58.82% and is valued at $49.3 billion.

BTC trading at $53,857 on the daily chart | Source: BTCUSDT chart on Tradingview.com

Featured image from Investopedia, chart from Tradingview

Semilore Faleti

Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency.

Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems.

In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others.

In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies.

Semilore also curated pieces for veteran crypto users ensuring they were up to date with the latest blockchains, decentralized applications and network updates. This foundation in educational writing has continued to inform his work, ensuring that his current work remains accessible, accurate and informative.

Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information.

Through his meticulous research and engaging writing style, Semilore strives to establish himself as a trusted source in the crypto journalism field to inform and educate his audience on the latest trends and developments in the rapidly evolving world of digital assets.

Outside his work, Semilore possesses other passions like all individuals. He is a big music fan with an interest in almost every genre. He can be described as a “music nomad” always ready to listen to new artists and explore new trends.

Semilore Faleti is also a strong advocate for social justice, preaching fairness, inclusivity, and equity. He actively promotes the engagement of issues centred around systemic inequalities and all forms of discrimination.

He also promotes political participation by all persons at all levels. He believes active contribution to governmental systems and policies is the fastest and most effective way to bring about permanent positive change in any society.

In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come.

His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry.

Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.

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