bitcoin price appears to have returned to a choppy market condition, quashing any hopes of reaching new highs soon. However, the good news is that the current bullish cycle may not be over yet, although it will take some time for the leading cryptocurrency to resume its upward momentum.
Specifically, the latest on-chain observation shows that bitcoin has been going through a “wave of euphoria” in recent months. Here is the implication of this phase in the current bull run.
How old is the current bitcoin 'wave of euphoria'?
Blockchain intelligence company Glassnode x.com/glassnode/status/1796550302381810174″ target=”_blank” rel=”nofollow”>revealed Through a post on the x platform, bitcoin has entered the euphoria phase of the market cycle. This on-chain observation is based on the “Percent Supply in Profit” metric, which measures the percentage of the total circulating bitcoin supply that is currently generating profit.
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According to Glassnode, the “Euphoria Wave” is identified as a period during which the profit bid typically fluctuates around the 90% level. This phase typically lasts between 6 and 12 months and is characterized by increased investor sentiment and increased market speculation.
Data from Glassnode shows that 93.4% of bitcoin's circulating supply is currently in the green and that the Euphoria Wave is “relatively young.” The on-chain analytics platform noted that the euphoria phase has only been active for about two and a half months.
As with all phases of the market cycle, the wave of euphoria will come to an end at some point. Historically, the euphoria phase can signal highs and is usually followed by a period of reflection, characterized by a drop in the price of bitcoin.
If we go by the last cycle, with a six-month wave of euphoria, then there could still be three to four months left in the current bull run. Ultimately, the current profitability of the leading cryptocurrency may prove pivotal in the length of its bull cycle and its overall future trajectory.
Increase in btc accumulation addresses continued in May: analyst
One of the telltale signs of bullish sentiment around bitcoin is the continued rise in accumulation addresses. According to an on-chain analyst on the CryptoQuant platform, there has been a notable increase in the number of new btc accumulation addresses.
the analyst bitcoin-and-ethereum-Accumulation-Addresses-What-It-Means-for-th?utm_source=telegram&utm_medium=sns&utm_campaign=quicktake&utm_content=crazzyblockk” target=”_blank” rel=”nofollow”>he pointed the continuation of this positive trend despite btc's relatively slow price action in May. Meanwhile, large bitcoin holders have also continued bitcoin-shark-whale-investors-go-to-the-market-heres-how-much-btc-they-bought/” target=”_blank” rel=”nofollow”>carry your suitcaseswith significant purchases recorded during the last month.
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At the time of writing, bitcoin is valued at $67,744, reflecting an increase of just 0.4% in the last 24 hours. According to data from CoinGecko, the pioneering cryptocurrency has increased by approximately 15% in the last month.
Featured image from iStock, chart from TradingView
