Bitcoin Enters Accumulation Zone as Key Indicators Hit Cycle Lows

Bitcoin has entered a historical accumulation zone, according to data from Glassnode and CryptoQuant. The on-chain indicators are pointing to capitulation territory, similar to what was seen during the late stages of bear markets in 2018-2019 and 2022-2023.

Glassnode's Bitcoin Cycle Composite score has fallen to 19.9, its coldest reading since the FTX collapse in late 2022. This composite score compresses 45 on-chain indicators into a single score from 0 to 100, with 41 of them currently sitting in the bottom two quintiles.

CryptoQuant's Adaptive Sell-side Risk Ratio has also dropped to 0.031, its third percentile since April 2024. This is considered a prolonged phase of market compression and repricing.

While this accumulation zone does not necessarily mean the bottom is in, it does improve the long-term risk-reward profile for Bitcoin investors. Analysts are cautioning against aggressive bottom calls, suggesting that another leg down could reset the clock.