Bitcoin Accumulation Signals Renewed Confidence After Sharp Sell-Off

Bitcoin entered February trading near the $80,000 level, but market sentiment at the time was deeply divided. Large holders, often referred to as whales, were cautiously increasing exposure, while retail investors were largely exiting positions amid growing uncertainty. That hesitation quickly gave way to panic. By Feb. 5, bitcoin had plunged to around $60,000, marking one of the sharpest short-term declines in recent history and triggering what is now considered a major capitulation event.

However, market behavior has shifted notably in the days following the sell-off. On-chain data suggests that investors across nearly all wallet sizes are now transitioning from fear-driven selling to coordinated accumulation, as many begin to view current price levels as an attractive entry point. This evolving dynamic points to a potential reset in market sentiment after a drawdown of more than 50% from bitcoin’s October all-time high.

Glassnode’s Accumulation Trend Score by cohort provides key insight into this transition. The metric evaluates accumulation intensity across different wallet sizes by accounting for both the size of entities and the amount of bitcoin accumulated over the last 15 days. Scores closer to 1 indicate accumulation, while values near 0 suggest distribution. On an aggregate basis, the score has climbed to 0.68, moving decisively above the neutral 0.5 threshold.

This marks the first instance of broad-based accumulation since late November, a period that previously aligned with bitcoin establishing a local bottom near $80,000. The data implies that investors may once again be positioning for a potential recovery rather than bracing for further downside.

Among all cohorts, wallets holding between 10 and 100 BTC have emerged as the most aggressive dip buyers, particularly as prices approached the $60,000 range. This behavior is often viewed as a bullish signal, as mid-sized holders tend to be more strategic and less reactive than smaller retail participants.

While it remains unclear whether bitcoin has definitively reached its market bottom, the resurgence of synchronized accumulation strongly suggests renewed confidence. Investors appear to be recalibrating expectations and identifying value after one of the most intense sell-offs in bitcoin’s history, setting the stage for the next phase of market evolution.