Bitcoin’s price has shown signs of returning to a choppy market condition, dimming hopes of an imminent breakout to new highs. However, despite the current stagnation, the ongoing bull cycle may not be over yet. Recent on-chain observations reveal that Bitcoin has entered a phase known as the “Euphoria Wave” over the past few months. This phase, as identified by blockchain intelligence firm Glassnode, is typically characterized by increased investor sentiment and heightened market speculation.
Glassnode’s analysis is based on the “Percent Supply in Profit” metric, which tracks the percentage of the total circulating Bitcoin supply that is currently in profit. According to the firm, the Euphoria Wave occurs when the supply in profit hovers around the 90% level. Presently, 93.4% of the circulating Bitcoin supply is in the green, indicating that the Euphoria Wave is still in its early stages.
Historically, the Euphoria Wave phase 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, we might expect the current bull run to last for another three to four months. The duration of Bitcoin’s bullish cycle and its future trajectory could hinge on its current profitability.
Despite the recent price stagnation, indicators of bullish sentiment around Bitcoin remain strong. The number of new BTC accumulation addresses has been steadily increasing, according to on-chain analysis on CryptoQuant’s platform. Furthermore, large Bitcoin holders continue to accumulate more coins, with significant purchases recorded in recent weeks.
At the time of writing, Bitcoin is valued at $67,744, showing a modest 0.4% increase over the last 24 hours. Over the past month, the pioneer cryptocurrency has gained about 15% in value, reflecting the underlying bullish sentiment in the market.
While Bitcoin’s price may currently be consolidating, the presence of the Euphoria Wave and other bullish indicators suggest that the current bull cycle may still have room to run. Investors should closely monitor market trends and on-chain data to stay informed about potential price movements and market cycles in the coming months.