The Bitcoin price has risen more than 200 percent in the past year, reaching a new all-time high above $73,000 on March 13. This rally gives sentiment around Bitcoin another push upwards, bringing us “closer to euphoria,” according to Glassnode analysts.
What does this mean for the Bitcoin price?
Glassnode itself claims that reaching the “euphoria zone” means that long-term investors are now starting to sell their Bitcoin to new investors.
People who invested in Bitcoin for years during the bear market are satisfied with their gains and want to realize some of them. They do this by selling to people who are now jumping into the market with FOMO.
However, this does not necessarily mean that the increases are almost over. In the past, these phases lasted quite a while. You should see it more as the beginning of the real bull market.
It remains to be seen how everything will work out, because we have the ETFs this year. In theory, these could significantly disrupt the “normal cycle” of Bitcoin. If demand for Bitcoin remains as high as it is now, it is difficult to imagine massive corrections coming.
Sentiments around Bitcoin are becoming euphoric
In Glassnode’s new “The Week Onchain” report, it writes that the recent breach of the old all-time high of $69,000 marks the “fourth new all-time high cycle in history.”
Checkmate points to Bitcoin’s significant rally above the $72,000 level, which it says means Bitcoin is in the “euphoria zone.” “That’s a phase that tends to be accompanied by new all-time highs,” said the Glassnode analyst.
In the above graph from Glassnode you can clearly see that the party normally only “begins” when the old all-time high is broken. Will it be the same this time? We certainly hope so, but unfortunately there is no such thing as certainty in the financial world.
In any case, sentiment is quite high at the moment with the score of 81/100 and “extreme greed”. But if the ETFs continue this way, the bears will have little to gain in this war against the bulls.
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Source: https://newsbit.nl/bitcoin-koers-richting-euforie-zone-terwijl-hodlers-verkopen/
