Accumulation Trend - Heatmap Cohorts (90D)

The "Accumulation Trend - Heatmap (90D)" is a tool used in the Bitcoin market to understand how large investors, those holding up to 10,000 BTC or more, are behaving in the market. Let's break this down for better understanding:

Large Investors (Cohorts)

• The focus is on Bitcoin addresses that hold large amounts of cryptocurrency, up to 10,000 BTC. These investors have a significant impact on the market due to the volume of their transactions.

90-Day Period

• The indicator analyzes the actions of these investors over a fixed period of 90 days. This timeframe is long enough to identify trends and patterns in investor behavior.

Accumulation and Distribution

• There are two main actions observed:
  • Accumulation: When investors are buying more Bitcoin and holding it in their wallets. This usually indicates an expectation that the value of Bitcoin will increase.
  • Distribution: When investors are selling Bitcoin. This could indicate that they expect a decline in value or need liquidity (available cash).

Heatmap (Mapa de Calor)

• To make this analysis accessible, a heatmap is used. It's a graphical representation where different colors indicate different levels of activity. For example, one color might represent high accumulation, while another might indicate high distribution.

Normalization of Data

• The data are normalized, meaning they are adjusted to make comparisons between different addresses fair, regardless of the size of their Bitcoin holdings. This is crucial for accurate analysis, as addresses with vastly different amounts of Bitcoin could skew the overall interpretation.

In summary, the "Accumulation Trend - Heatmap (90D)" is a tool that uses a heatmap to visually and comprehensibly show how large Bitcoin holders are behaving in the market, whether accumulating or distributing, over a period of 90 days. This helps investors and analysts to understand market trends and make more informed decisions in investment decision-making.