Bitcoin Price Analysis: Are We Still in a Bull Run?

Bitcoin Price Analysis: Are We Still in a Bull Run?

Bitcoin’s price has been experiencing a choppy market condition recently, dampening hopes of a breakout to new highs in the near future. Despite this, there are signs that the current bull cycle may not be over yet, as the premier cryptocurrency seems to be going through a phase of euphoria, according to on-chain observations. This article delves into the implications of this euphoria wave on the current bull run.

Understanding the Euphoria Wave

Glassnode, a blockchain intelligence firm, recently reported that Bitcoin has entered the euphoria phase of the market cycle based on the “Percent Supply in Profit” metric. This metric measures the percentage of the total circulating Bitcoin supply that is currently in profit. When the supply in profit fluctuates around the 90% level, it is identified as the Euphoria Wave. This phase typically lasts between 6 to 12 months and is characterized by increased investor sentiment and heightened market speculation. Currently, 93.4% of the circulating Bitcoin supply is in profit, indicating that the Euphoria Wave is still in its early stages.

Historically, the Euphoria Wave can signal market tops and is often followed by a cooling-off period, marked by a decline in the price of Bitcoin. If we look at the last cycle with a 6-month Euphoria Wave, there might still be about three to four months left in the current bull run. The profitability of Bitcoin plays a crucial role in determining the duration of its bull cycle and future trajectory.

One of the indicators of bullish sentiment towards Bitcoin is the continuous rise in accumulation addresses. On-chain data from CryptoQuant’s platform shows a significant increase in the number of new BTC accumulation addresses, despite Bitcoin’s slow price action in May. Furthermore, large holders of Bitcoin have been increasing their holdings, making significant purchases over the past month. These trends suggest that investors are still optimistic about Bitcoin’s future prospects.

At the time of writing, Bitcoin is valued at $67,744, reflecting a 0.4% increase in the last 24 hours. Over the past month, the pioneer cryptocurrency has seen a 15% increase in value, indicating a positive trend in the market. While the price may be experiencing fluctuations, the overall sentiment remains bullish among investors.

The current phase of euphoria in the Bitcoin market suggests that we may still be in the midst of a bull run. However, it is essential to keep an eye on market indicators and on-chain data to gauge the sustainability of this trend. The future trajectory of Bitcoin’s price will depend on several factors, including investor sentiment, market speculation, and overall profitability. As the market continues to evolve, it will be interesting to see how Bitcoin’s price behavior unfolds in the coming months.

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