On-chain analytics firm Glassnode has highlighted how Bitcoin has only seen a relatively thin accumulation band form during the recent consolidation range.
Bitcoin STH CBD Shows Accumulation Remains Thin
In a new post on X, Glassnode has talked about the latest trend in the Bitcoin Cost Basis Distribution (CBD) of the short-term holders. The CBD here refers to an indicator that tells us about the amount of supply that was purchased at the various price levels visited by BTC in its history.
The CBD of the short-term holders (STHs) specifically tracks this for the supply that was purchased within the past 155 days. The short time frame means that supply clusters on the indicator always thin out over time, whether by coins from them being moved at other price levels (thus regaining their cost basis there) or by maturing into the long-term holder (LTH) cohort, beyond the 155-day cutoff.
Now, here is the chart shared by Glassnode that shows how the Bitcoin STH CBD has changed over the past year:
As displayed in the above graph, the Bitcoin STH CBD gained a large supply cluster at the price lows seen back in November, indicating that a notable amount of fresh accumulation took place in response to the market crash.
This dense supply zone then acted as a support cushion for the asset, helping stabilize it into a phase of consolidation. Eventually, though, the cryptocurrency’s bearish momentum returned and its price plummeted deep under the cluster. This implies that all tokens part of it have gone underwater.
Besides the strong supply zone at the range’s lower end, the consolidation phase from November-January also resulted in some higher levels being filled out with supply. This accumulation wasn’t quite as strong as at the lows, but it still nonetheless showed that coins were actively changing hands.
Recently, Bitcoin has stabilized into another phase of sideways movement, but from the chart, it’s apparent that this time there has neither been a strong dip buying response, nor a buildup of a significant supply cluster as the consolidation has gone on.
That said, buying hasn’t been completely absent, with some supply starting to find cost basis inside the zone. “An accumulation cluster is forming in the $62k–$72k range,” noted Glassnode. “However, its intensity is modest relative to prior phases that preceded sustained expansions.”
It now remains to be seen how the supply range will develop in the near future. For now, the foundation provided by it remains thin for a mid-term breakout, according to the analytics firm.
BTC Price
At the time of writing, Bitcoin is trading around $71,100, up nearly 5% over the past week.