Understanding Bitcoinโs Euphoria Phase with Glassnode Analytics
If youโre wondering whether Bitcoin (BTC) is still in a euphoria phase despite recent market corrections, insights from Glassnodeโs on-chain metrics analysis shed light on the current state of the crypto king. Hereโs why Bitcoinโs downward price action might just be the beginning of a new bull run.
Glassnodeโs Analysis of Bitcoinโs Market Cycle
According to Glassnodeโs latest report, BTCโs recent price corrections are relatively mild compared to previous market cycles, indicating that Bitcoin is still in the early stages of an upward trend. Here are some key takeaways from Glassnodeโs analysis:
- Historically Small Pullbacks:
- The magnitude of pullbacks in the current market remains historically small despite significant profit-taking by existing holders.
- Young Euphoria Phase:
- While the market is in a price discovery phase, the current euphoria phase is relatively young compared to previous cycles.
- Previous euphoria phases have experienced deeper price drawdowns, with corrections exceeding -10% and often reaching 25% or more.
- Shallow Corrections:
- Since breaking the all-time high, the current market has only seen two corrections of around 10% or more, indicating a resilient market sentiment.
Bitcoin Strength & Market Performance
Moreover, Glassnodeโs on-chain analysis of major exchanges highlights the underlying strength of Bitcoin over the past year, driven by spot market inflows and new demand from market entrants. Hereโs what Glassnodeโs research reveals:
- Spot Trade Volumes:
- The surge in spot trade volumes and on-chain flows linked to exchanges has supported Bitcoinโs robust performance in the market.
- Strong Demand:
- Analysis of the Cumulative Volume Delta indicates a strong demand side, with bids favoring the maker side over the taker side, reflecting confidence in the market.
- Wealth Balance:
- While profit-taking has increased with Bitcoin surpassing the 2021 ATH, a balance between long-term holders and new demand signals that the euphoria phase is still in its early stages historically.
Hot Take: Bitcoinโs Euphoria Phase Decoded
As per Glassnodeโs insightful analysis, Bitcoinโs euphoria phase is yet to reach its peak, with the current market sentiment indicating a potential for further growth and price discovery. Stay tuned to witness how Bitcoinโs journey unfolds in the coming weeks and months.
Daisy Hodley emerges as a luminary blending the roles of crypto analyst, devoted researcher, and editorial virtuoso into a harmonious symphony. In the realm of digital currencies, Daisy’s insights resonate with an exquisite resonance across a diverse spectrum of minds. Her adeptness in decoding intricate threads of crypto complexities seamlessly intertwines with her editorial finesse, translating intricacy into a captivating melody of understanding.