Are Bitcoin Investors Back In Accumulation Mode? On-Chain Data Says ‘Possibly’

After the market-wide downturn on October 10, the Bitcoin price showed no definite direction for the rest of the historically bullish ￰0￱ the moment, the premier cryptocurrency is struggling to gather any significant momentum to the upside. However, recent on-chain evaluation suggests that this period of relative silence could represent a springboard for the cryptocurrency’s sustained ￰1￱ Ratio Falls To One-Year Low In a recent Quicktake post on the CryptoQuant platform, pseudonymous analyst CryptoOnchain shared an interesting insight into Bitcoin’s future trajectory, leaning towards a bullish hypothesis in the ￰2￱ relevant on-chain indicator here is the Bitcoin Sender/Receiver Address Ratio, which compares the number of active sending (selling) addresses to receiving (buying) ￰3￱ metric acts as a means to gauge the prevalent market sentiment within a period of ￰4￱ Reading: Altcoin Season Loading: Bullish Factors That Point To A Massive Surge A high ratio (with a reading above 1) indicates that there are more sending addresses compared to the buying ￰5￱ a result, there is expectedly greater selling pressure in this market ￰6￱ the other hand, a low ratio (a reading approaching 1 and levels below) reflects the preponderance of buying ￰7￱ reported that Bitcoin’s Sender/Receiver ratio on Binance has recently fallen to 1.34 — its lowest level in the past ￰8￱ previously explained, when this ratio falls to levels such as it currently reads, it usually indicates that there are more buying addresses relative to the amount of selling addresses in the ￰9￱ shift in investor leanings typically signals an accumulation phase, where more investors are willing to acquire Bitcoin on exchanges.

Interestingly, the analyst also referenced historical evidence, explaining that periods where this shift in market sentiment occurred often preceded the establishment of local price ￰10￱ of late 2024, the Sender/Receiver ratio fell to levels around 1.3, with significant upward movement following suit, and a similar pattern was seen in early ￰11￱ to CryptoOnchain, this current consolidation phase could signal that the market’s foundation is gaining strength. Thus, if history is anything to go by, Bitcoin’s price could see an immense upward boost in the days to come — one which could sponsor the world’s leading asset to see a fine amount of growth in the ￰12￱ Price At A Glance As of this writing, Bitcoin is worth approximately $109,899, reflecting no significant movement in the past ￰13￱ to data from CoinGecko, the premier cryptocurrency is down by nearly 2% in the past seven ￰14￱ Reading: Ethereum Support Band Under Pressure — Can Bulls Revive Momentum From $3,700?

Featured image from iStock, chart from TradingView