Short Description:
Bitcoin’s swift plunge from $80,000 to $60,000 has triggered a historic shift: whales and key cohorts are now aggressively accumulating BTC, signaling a potential market bottom.
Read Time: 3 minutes 30 seconds
Main Article:
The opening days of February delivered a dramatic turn in the Bitcoin market. After trading near $80,000, the leading cryptocurrency experienced a rapid selloff, plummeting to around $60,000 by February 5th. This steep decline represented a drawdown of over 50% from its October all-time high, shaking out a significant number of retail investors who fled the market. However, blockchain data reveals this capitulation event has set the stage for a powerful and broad-based reversal in investor behavior.
On-chain analytics from Glassnode now show a clear and synchronized shift toward accumulation. The platform’s Accumulation Trend Score, which measures the relative strength of buying across different wallet cohorts, has surged above 0.5 to reach 0.68. A score closer to 1 signals strong accumulation. This is the first time since late November that such widespread buying pressure has been observed—a period that previously coincided with Bitcoin finding a local bottom. The most aggressive dip buying has come from wallets holding between 10 and 100 BTC, who stepped in decisively as prices neared the $60,000 mark.
While it remains uncertain if the ultimate market bottom is in, this data paints a compelling narrative. The severe correction has flushed out weak hands, allowing committed investors—from large whales to mid-sized holders—to accumulate Bitcoin at prices they perceive as strong value. This transition from panic selling to strategic buying often forms the foundation for the next phase of market recovery, suggesting that patient investors are positioning themselves for the long term amidst the volatility.
Short Summary:
Bitcoin’s sharp correction to $60,000 catalyzed a major shift from capitulation to accumulation. On-chain data shows wallets holding 10-100 BTC leading the dip-buying charge, with the overall Accumulation Trend Score hitting 0.68. This broad-based buying suggests investors are finding value, potentially marking a turning point after the severe selloff from all-time highs.
