The price of Bitcoin has been showing signs of returning to a choppy market condition, which has put a damper on hopes of a swift breakout to new highs. Despite this, there is still optimism surrounding the ongoing bull cycle, with indicators pointing towards a continuation of the upward momentum. One such indicator is the recent on-chain observation suggesting that Bitcoin is currently in a phase known as the “euphoria wave.”
According to a report by blockchain intelligence firm Glassnode, Bitcoin has entered the euphoria phase of the market cycle. This observation is based on the “Percent Supply in Profit” metric, which measures the percentage of the total circulating Bitcoin supply that is currently in profit. Glassnode notes that during the euphoria phase, the supply in profit typically hovers around the 90% level, a sign of increased investor sentiment and market speculation. Currently, 93.4% of circulating Bitcoin is in profit, indicating that the Euphoria Wave is still in its early stages, having been active for only about two and a half months.
Historically, the euphoria phase can signal market tops and is usually followed by a cooling-off period characterized by a price downturn. If we look at the previous cycle, which had a 6-month Euphoria Wave, it is possible that the current bull run could still have another three to four months left. The duration and trajectory of Bitcoin’s bull cycle will likely depend on its current profitability and investor sentiment.
Accumulation Addresses and Investor Sentiment
A key indicator of bullish sentiment around Bitcoin is the continuous rise in accumulation addresses. On-chain analysts on platforms like CryptoQuant have noted a significant increase in the number of new Bitcoin accumulation addresses, despite the relatively slow price action in May. Furthermore, large Bitcoin holders have been actively accumulating more BTC, with substantial purchases recorded in the past month. These actions suggest a positive outlook for Bitcoin’s future price performance.
Current Price and Performance
As of the latest data, Bitcoin is trading at $67,744, reflecting a slight 0.4% increase in the last 24 hours. Over the past month, the pioneer cryptocurrency has seen a 15% increase in value according to CoinGecko. While the price may be experiencing fluctuations in the short term, the overall trend and market indicators point towards continued bullish momentum in the coming months.
While the current state of Bitcoin’s market cycle may seem choppy and uncertain, there are underlying factors such as the Euphoria Wave phase and increasing accumulation addresses that indicate a positive outlook for the premier cryptocurrency. Investors and market watchers should pay close attention to these indicators to gauge the potential duration and trajectory of Bitcoin’s ongoing bull run.
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