Bitcoin’s price appears to have returned to volatile market conditions, dashing any hopes of a quick breakout to novel highs. However, the good news is that the current bull cycle may not be over yet, even though it will take some time for the major cryptocurrency to regain its upward momentum.
In particular, the latest on-chain observations show that Bitcoin has been going through a “wave of euphoria” over the past few months. Here is the impact of this phase on the current bull run.
How aged is Bitcoin’s current “euphoria wave”?
Blockchain intelligence company Glassnode revealed via a post on Platform X that Bitcoin has entered the euphoria phase of the market cycle. This on-chain observation is based on the “Percentage of Supply in Profit” metric, which measures the percentage of the total circulating supply of Bitcoin that is currently profitable.
According to Glassnode, a “Euphoria Wave” is a period in which the profit supply typically hovers around 90%. This phase usually lasts from 6 to 12 months and is characterized by increased investor sentiment and increased market speculation.
Glassnode data shows that 93.4% of Bitcoin’s circulating supply is currently in the green and the Euphoria wave is “relatively young.” The on-chain analytics platform noted that the euphoria phase has only been going on for about two and a half months.
Like every phase of the market cycle, the euphoria wave will eventually come to an end. Historically, a euphoria phase can signal highs and is usually followed by a cooling off period, which is characterized by a decline in Bitcoin’s price.
If the last cycle – with a 6-month wave of euphoria – is sufficient, the current bull run may continue for about three to four months. Ultimately, the current profitability of the leading cryptocurrency could prove crucial to the duration of the bull cycle and overall future trajectory.
Enhance in the number of BTC accumulation addresses – continued in May: analyst
One of the telltale signs of the bullish sentiment around Bitcoin is the continued raise in the number of accumulator addresses. According to an on-chain analyst, there has been a noticeable raise in the number of novel BTC accumulation addresses on the CryptoQuant platform.
Analyst indicated a continuation of this positive trend despite BTC’s relatively snail-paced price action in May. Meanwhile, huge Bitcoin holders continued to do so as well load your bagswith significant purchases recorded over the past month.
At the time of writing, Bitcoin is valued at $67,744, reflecting just a 0.4% gain over the past 24 hours. According to data from CoinGecko, the pioneering cryptocurrency has increased by about 15% in the last month.
Featured image from iStock, chart from TradingView
