The bitcoin wallets have entered distribution mode, signaling a notable shift in market sentiment according to the latest data from Glassnode. The Accumulation Trend Score (ATS)—a key metric that reflects whether investors are increasing or decreasing their bitcoin holdings—shows that every wallet cohort is now offloading some of their assets.

Understanding the Accumulation Trend Score (ATS)

The ATS metric is designed to detect accumulation or distribution trends across various wallet sizes. It considers both the entity’s wallet size and the volume of bitcoin accumulated over the previous 15 days. A score nearing 1 reveals widespread accumulation activity, while a score closer to 0 denotes prominent distribution.

• An ATS close to 1 = strong accumulation
• An ATS close to 0 = strong distribution

It’s important to note that this analysis excludes certain participants like exchanges and miners, focusing on pure investor behavior instead.

Market-Wide Distribution Across All Wallet Sizes

The latest data shows a unified pattern: all bitcoin wallet cohorts—from whales holding over 10,000 BTC to wallets with less than 1 BTC—are actively distributing their holdings. This broad-based movement marks a stark contrast to the accumulation phase seen just a week ago when bitcoin’s price surged past $124,000 to a new all-time high.

This shift in behavior suggests that the wider market is engaging in profit taking, a common occurrence following major price milestones. It also highlights a potential short-term bearish sentiment among bitcoin holders.

Historical Patterns Suggest Seasonal Slowdown

Bitcoin has delivered an impressive run in recent months, posting gains from April through July. However, August has historically seen a cooling-off period. In fact, each of the last three Augusts recorded significant double-digit corrections.

Currently, the aggregate ATS across all cohorts sits at 0.26, a value that has remained below 0.5 for several consecutive days—a clear sign that the distribution phase is still active.

All wallet sizes are currently distributing bitcoin, as shown in this Glassnode chart.

Related: Cardano Bull Setup Points to December Rally

With trading activity slowing and historical trends pointing to potential corrections, investors are likely reassessing their positions. Strategic selling during bullish peaks could indicate a more cautious approach to bitcoin investing as the market moves into late summer.