Bitcoinโs on-Chain Euphoria Wave and Supply Profit
Recent data from Glassnode suggests that Bitcoin is currently experiencing a phase similar to the previous cycle in terms of Supply Profitability State. This metric, based on Percent Supply in Profit, tracks the percentage of the total circulating Bitcoin supply that is currently in a profitable position.
- The indicator analyzes the on-chain history of each coin in circulation to determine its current cost basis.
- If the cost basis is lower than the current spot price, the coin holds unrealized gains.
- The Percent Supply in Profit calculates the total percentage of coins in profit.
Bitcoinโs Historical Trends
During the previous bull run, Bitcoin went through various phases before reaching all-time highs:
- 1.5-month pre-euphoria wave testing the +1SD line
- Decline and consolidation, bringing Supply In Profit below +1SD
- Sharp rally surpassing +1SD and reaching new records
Currently, Bitcoin seems to be following a similar pattern, with a two-month euphoria wave after a drawdown phase. If history repeats, the ongoing rally could last for at least four more months.
Bitcoin Price Movement
Bitcoin had briefly surged above $72,000 before retracing back to around $69,400.
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