Data from the Bitcoin blockchain shows that Bitcoin is going through an upswing. “euphoria wave” Two months. This is how long the bull market lasted in this phase.
The Supply in Profit Reports that Bitcoin has been in a wave phase of euphoria.
The latest report by the On-chain Analytics firm GlassnodeThe current BTC is very similar to last year’s cycle. “Supply Profitability State.”
The indicator uses the data from “Percent Supply in Profit“, which tracks the current profit percentage in the Bitcoin total supply.
The metric is based on the last price that a coin was sold at. This metric works by looking at the history of each coin in circulation to see the price it was traded at.
It is obvious that if the cost basis of the coin has a lower value than its current spot rate, it will carry a gain net. In order to calculate the Percentage of Supply in profit, all coins are added together and a percentage is calculated.
This indicator indicates the current BTC phase, based upon market profitability. Below is a chart that shows this indicator’s trend over the past several years.
It seems that the indicator has given a positive signal over recent weeks.| Source: Glassnode's The Week Onchain - Week 15, 2024
The chart highlights three lines that are important for Bitcoin Percent Supply Profit. The blue line represents the cumulative average of the metric.
The market is considered to be in a pre-euphoria stage or euphoria when the Bitcoin Percent Supply Profit exceeds the +1.5SD. (approximately 95 percent of the Bitcoin supply are in green).
The Supply Profitability State indicates a bottom-discovery phase when values are less than -1SD. Between these two is the “bear/bull transition” phase.
The chart shows that the number of people who migrated to the United States has increased dramatically in the past decade. bull runBitcoin experienced a pre-euphoria period of 1.5 months, when the indicator tested the line +1SD. This was followed by a period where the Supply In Profit fell below the +1 SD line.
The coin then experienced a strong rally and broke through the barrier of +1SD, before reaching new highs. This naturally increased the supply in profit to 100%.
Bitcoin has followed a pattern similar to the last time. After a 2-month pre-euphoria, a 2 month drawdown followed. Now we are in a 2-month euphoria where the currency has reached its highest level. new records.
The Bitcoin bullish rally could last for four to six months if this euphoria-wave lasts a similar period as did the last bull run.
BTC Price
Bitcoin recovered to a level above $72,000, however, it now appears the asset is retracing back toward the $69400 mark.
Source| Source: BTCUSD on TradingView
Chart from TradingView.com. Image from iStock.com. Glassnode.com.
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