The Bitcoin market cycle has been a topic of interest among investors and traders alike, and according to data by CryptoQuant, the best way to analyze it is through the BTC holders’ realized price. In this article, we will explore the different phases of the Bitcoin market cycle and focus on the behavior of long-term holders.
The first phase of the Bitcoin market cycle is the accumulation phase, where long-term holders’ realized price steadily increases. This phase usually begins with the 1-3 year realized price UTXO age bands rising in value. Other long-term cohorts tend to add to their balance during price growth, but they do so more cautiously.
The second phase of the Bitcoin market cycle is the acceptance phase, which is the most valuable area for the BTC market. This phase is characterized by the return of confidence to the market and the disappearance of fear caused by prior declines. The duration of the previous bearish phase and the sentiments of the holders play a crucial role in determining how long this phase will last.
The third and final phase of the Bitcoin market cycle is the euphoria greed phase, which comes after the acceptance phase and the profitability of most BTC holders. In this phase, long-term holders start to distribute their BTC, leading to a possibility of selling pressure. New investors or beginners usually start the accumulation phase during this time, dreaming of another price growth.
Currently, the Bitcoin market cycle is in need of more new BTC addresses and investors to continue its growth. The 2-3 year realized price UTXO age bands are still strong and interested in accumulating more bitcoin. While the ~10 year age bands have also increased their balances in the past few weeks, more interest is needed from other cohorts for a bull run to happen. The acceptance phase’s duration is closely related to the behavior and status of short-term holders, as mentioned in a previous article.
In conclusion, understanding the different phases of the Bitcoin market cycle and the behavior of long-term holders is crucial for investors and traders looking to make informed decisions. With the current state of the market, more interest from new BTC addresses and investors is needed to continue its growth. The Bitcoin market cycle is always changing, and keeping up with the latest data and trends is essential for success.
Read more:
- Skybridge CEO Sees End Of Crypto Bear Market With Approaching Halving Cycle
- Elon Musk Playfully Suggests That Jim Cramer Is A Reliable Investment Indicator