The price of Bitcoin appears to have returned to a volatile market, eliminating any hopes of breaking new highs anytime soon. However, the good news is that the current bull cycle may not be over yet, although it will take some time for the premier 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’s how this phase has affected the current bull run.
How old is the current Bitcoin 'euphoria wave'?
Blockchain intelligence firm Glassnode revealed via an article on Platform X that Bitcoin has entered the euphoria phase of the market cycle. This on-chain observation is based on the “Profitable Supply Percentage” metric, which measures the percentage of the total circulating Bitcoin supply that is currently in a state of profit.
According to Glassnode, the “euphoria wave” is identified as a period when profit supply usually fluctuates around the 90% level. This phase usually lasts for 6 to 12 months and is characterized by increased investor sentiment and intensified market speculation.
Data from Glassnode shows that 93.4% of the circulating Bitcoin supply is currently in the green, and the Euphoria Wave is “relatively young.” The on-chain analytics platform noted that the euphoria phase was only active for about two and a half months.
As with every phase of a market cycle, the euphoria wave eventually ends at some point. Historically, euphoria phases can signal a top, and are usually followed by a cool-down period marked by a decline in the price of Bitcoin.
If the last cycle – a six-month wave of euphoria – is anything to go by, the current bull run may still have about three to four months to go. Ultimately, the current profitability of the premier cryptocurrency could play a key role in the duration of its bull cycle and overall future trajectory.
BTC accumulation addresses continue to rise in May: analysts
One clear sign of the bullish sentiment surrounding Bitcoin is the continued rise in accumulation addresses. According to an on-chain analyst on the CryptoQuant platform, the number of new BTC accumulation addresses has increased significantly.
The analyst noted that this positive trend has continued despite BTC’s relatively slow price action in May. Meanwhile, large Bitcoin holders have also continued to bag their holdings, recording significant purchases over the past month.
At the time of writing, Bitcoin is valued at $67,744, having gained just 0.4% in the past 24 hours. The pioneer cryptocurrency is up about 15% in the past month, according to data from CoinGecko.
