Bitcoin price appears to have returned to a volatile market state, eliminating any hopes of breaking out to new highs soon. However, the good news is that the current bull 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 observations show that Bitcoin has been experiencing a “wave of euphoria” over the past few months. Here are the implications of this phase on the current uptrend.
How old is Bitcoin's current “euphoria”?
Blockchain intelligence company Glassnode open A post on the X platform stated that Bitcoin has entered the euphoric phase of the market cycle. This on-chain observation is based on the “% supply at profit” metric, which measures the percentage of the total Bitcoin supply in circulation that is currently profitable.
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According to Glassnode, an “euphoria wave” is defined as a period during which the supply in profit usually fluctuates around the 90% level. This phase usually lasts between 6 to 12 months and is characterized by increased investor sentiment and increased market speculation.
Glassnode data shows that 93.4% of Bitcoin supply in circulation is currently in the green and that the euphoria is “relatively recent.” The on-chain analytics platform noted that the Euphoria phase was only active for two and a half months.
As with every stage of the market cycle, the euphoria will eventually end at some point. Historically, the euphoria phase can indicate peaks and is usually followed by a calm period, which is characterized by a decline in the Bitcoin price.
If the last cycle – with the 6-month euphoric wave – still needs to continue, there may still be approximately three to four months left in the current uptrend. Ultimately, the current profitability of the leading cryptocurrency may be pivotal in the duration of the bull cycle and overall future trajectory.
BTC Accumulation Addresses Continue to Surge in May: Analyst
One sign of a bullish trend around Bitcoin is the continued rise in accumulator addresses. According to an analyst on the CryptoQuant platform, there has been a noticeable increase in the number of new BTC accumulator addresses.
analyst pointed out This positive trend continues despite BTC's relatively slow price movement in May. Meanwhile, large Bitcoin holders also continued to do so Loading their bagsWith large purchases recorded during the past month.
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As of this writing, Bitcoin is valued at $67,744, reflecting an increase of just 0.4% over the past 24 hours. According to data from CoinGecko, the leading cryptocurrency has risen by about 15% in the past month.
Featured image from iStock, chart from TradingView
