Bitcoin’s price movement has shifted back to a choppy market condition, dampening hopes of a quick breakout to new highs. Despite this setback, there is still optimism surrounding the continuation of the current bull cycle. Recent on-chain data suggests that Bitcoin has entered a phase known as the “Euphoria Wave” in the market cycle, shedding light on what this means for the ongoing bullish trend.
Glassnode, a blockchain intelligence firm, has highlighted the Euphoria Wave in a recent post on their platform. The metric used to determine this phase is the “Percent Supply in Profit,” which measures the percentage of the total circulating Bitcoin supply that is currently in profit. According to Glassnode, the Euphoria Wave is characterized by the supply in profit hovering around the 90% level. This phase typically lasts between 6 to 12 months and is characterized by heightened investor sentiment and market speculation.
Implications of the Euphoria Wave
The latest data from Glassnode shows that 93.4% of the circulating Bitcoin supply is currently in profit, indicating that the Euphoria Wave is still in its early stages. This phase has been active for about two and a half months, suggesting that there is still room for further growth in this bullish trend. However, it is important to note that every market cycle has an end, and the Euphoria Wave is no exception.
Historically, the Euphoria phase in the market cycle can signal market tops and is often followed by a cooling-off period, marked by a decline in Bitcoin’s price. If we look at the previous cycle, which had a 6-month Euphoria Wave, it could be inferred that the current bull run may still have about three to four months left. The profitability of Bitcoin in the current market conditions may play a crucial role in determining the duration of the bull cycle and its future trajectory.
Bullish Sentiment and Accumulation
One of the indicators of bullish sentiment surrounding Bitcoin is the continuous rise in accumulation addresses. According to an on-chain analyst on CryptoQuant’s platform, there has been a noticeable increase in the number of new BTC accumulation addresses despite Bitcoin’s slow price action in May. Additionally, large Bitcoin holders have been actively accumulating more BTC over the past month, signaling confidence in the cryptocurrency’s future potential.
As of the latest data, Bitcoin is trading at $67,744, with a slight 0.4% increase in the last 24 hours. Over the past month, Bitcoin has seen a 15% increase in its value, reflecting ongoing positive sentiment and accumulation trends in the market. As investors navigate through the Euphoria Wave and its implications, it will be interesting to see how Bitcoin’s price movement evolves in the coming months and whether the current bull cycle has more room to grow.
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