Bitcoin (BTC) Enters 'Euphoric Phase' as 99.3% of Addresses Are in Profit, But When Will the Music Stop?

Bitcoin (BTC) is on a bull market after breaking out of its all-time high of $73,800, fuelling market euphoria. Historically, this “euphoric phase” will last for a few months before making a new top and reversing back down.

Bitcoin (BTC) price has been on a bull market after breaking out of its all-time high. This has fuelled market euphoria, and historically, this “euphoric phase” will last for a few months before making a new top and reversing back down.

Ki Young Ju, founder and CEO of CryptoQuant, greeted Bitcoin’s euphoria and warned investors about the “euphoric phase” roadmap. In particular, the crypto executive and analyst highlighted that “euphoria” usually lasts three to 12 months, except for 2021’s cycle.

According to him, euphoria started two weeks ago, and 99.3% of all BTC addresses are in profit right now. As a result, this suggests that BTC might be nearing its top, and traders could be preparing for a potential reversal soon.

However, it is interesting to note that Bitcoin already experienced euphoria during March’s breakout, with the three-to-twelve-month range potentially counting from there, similar to what happened in 2013-2014.

“Shorting [BTC] now,” Ki Young Ju said, “could be either catching the top—or shorting at the bottom of a parabolic bull run.”

Usually, shorting BTC during the start of “Euphoria” has proven to be a bad decision. Yet, March’s activity and the following consolidation phase make it uncertain whether we are starting or ending Bitcoin’s euphoric phase.

Most analysts agree that now is not a good time to short Bitcoin, foreseeing more upside potential. As Finbold reported, an analyst believes we are starting “the biggest crypto bull run ever.”

In the meantime, other reports forecast Bitcoin to reach $138,000 just before a major correction takes place. Notably, this is a similar target of a previously covered exit strategy from a prominent trading expert.

Bitcoin (BTC) price analysis

As of this writing, Bitcoin is trading at $91,863, up 0.03% in the past 24 hours and nearly 118% year-to-date. BTC started 2024 at $42,210, making an impressive run up to $73,800 in March, breaking out of 2021’s all-time high of $69,000.

After this euphoric phase, with over 99% addresses in profit, Bitcoin entered a seven-month downtrend that ended in early November. As things developed, Donald Trump’s victory ignited the current euphoria, breaking out of the downtrend and setting the path forward.

Now, traders and investors bet on whether Bitcoin will continue its rally, consolidate for a while, or reverse entirely. Given the cryptocurrency market’s inherent volatility and unpredictability, speculators must understand and manage the risks accordingly, moving with caution.

Featured image from Shutterstock.

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