Bitcoin In ‘Euphoria Wave’ – How Long Until The Bull Run Ends?
June 02 2024 - 5:50AM
NEWSBTC
The price of Bitcoin appears to have returned to a choppy market
condition, quashing any hopes of a breakout to new highs soon.
However, the good news is that the current bull cycle may still not
be over, even though it is taking a while for the premier
cryptocurrency to resume its upward momentum. Specifically, the
latest on-chain observation shows that Bitcoin has been going
through a “euphoria wave” over the past few months. Here’s the
implication of this phase on the current bull run. How Old Is The
Current Bitcoin ‘Euphoria Wave’? Blockchain intelligence firm
Glassnode revealed via a post on the X platform that 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 in profit. Related Reading: Can BONK Break
The Mold? Analyst Predicts Stellar Rise For The Solana Memecoin
According to Glassnode, the “Euphoria Wave” is identified as a
period during which the supply in profit usually fluctuates around
the 90% level. This phase typically lasts between 6 to 12 months
and is characterized by increased investor sentiment and heightened
market speculation. Glassnode’s data shows that 93.4% of the
circulating Bitcoin 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 every phase in the market
cycle, the Euphoria Wave will eventually come to an end at some
point. Historically, the euphoria phase can signal tops and is
usually followed by a cooling-off period, which is marked by a
downturn in the price of Bitcoin. If the last cycle – with a
6-month Euphoria Wave – is anything to go by, then there might
still be about three to four months in the current bull run.
Ultimately, the current profitability of the premier cryptocurrency
may prove pivotal in the duration of its bull cycle and overall
future trajectory. Rise Of BTC Accumulation Addresses Continued In
May: Analyst One of the tell-tale signs of the bullish sentiment
around Bitcoin is the continuous rise in accumulation addresses.
According to an on-chain analyst on CryptoQuant’s platform, there
has been a notable increase in the number of new BTC accumulation
addresses. The analyst pointed out the continuity of this positive
trend despite BTC’s relatively slow price action in May. Meanwhile,
the large Bitcoin holders have also continued to load their bags,
with significant purchases recorded over the past month. Related
Reading: Dogecoin Whales Buy $112 Million Worth Of DOGE As Crypto
Investors Turn Their Attention To Meme Coins As of this writing,
Bitcoin is valued at $67,744, reflecting a mere 0.4% increase in
the last 24 hours. According to data from CoinGecko, the pioneer
cryptocurrency is up by about 15% in the past month. Featured image
from iStock, chart from TradingView
Four (COIN:FOURRUSD)
Historical Stock Chart
From May 2024 to Jun 2024
Four (COIN:FOURRUSD)
Historical Stock Chart
From Jun 2023 to Jun 2024