The price of Bitcoin has been showing signs of returning to a choppy market condition, dampening hopes of a quick breakout to new highs. Despite this, the current bull cycle may not be over just yet. Recent on-chain observations suggest that Bitcoin is currently experiencing what is known as the “euphoria wave”. This phase can have significant implications for the future of the cryptocurrency market.
According to a report by blockchain intelligence firm Glassnode, Bitcoin has entered the euphoria phase of the market cycle. This phase is identified by the “Percent Supply in Profit” metric, which measures the percentage of the total circulating Bitcoin supply that is currently in profit. Glassnode’s data shows that 93.4% of the circulating Bitcoin supply is currently in profit, indicating that the euphoria wave is still in its early stages.
Historically, the euphoria phase can signal market tops and is often followed by a cooling-off period. Based on past data, if the current euphoria wave lasts for about 6 to 12 months, there might still be several months left in the current bull run. It is essential to monitor the profitability of Bitcoin as it could play a crucial role in determining the duration of the bull cycle and its overall trajectory.
One of the notable trends supporting the bullish sentiment around Bitcoin is the continuous rise in accumulation addresses. On-chain analysts have observed a significant increase in the number of new BTC accumulation addresses, even amidst Bitcoin’s relatively slow price action in recent months. Moreover, large Bitcoin holders have been actively increasing their holdings, further indicating confidence in the cryptocurrency’s future prospects.
As of the latest data, Bitcoin is valued at $67,744, with a slight 0.4% increase in the last 24 hours. Over the past month, the pioneer cryptocurrency has seen a 15% increase in value, reflecting continued investor interest and confidence in its long-term potential.
The euphoria wave that Bitcoin is currently experiencing could have significant implications for its future price movements and overall market cycle. While past patterns suggest that the euphoria phase may eventually come to an end, it is crucial to monitor key indicators such as profitability and accumulation trends to gauge the cryptocurrency’s future trajectory. As always, investors are advised to conduct thorough research and exercise caution when navigating volatile markets like Bitcoin’s.
