The Euphoria Phase
During a bull market, there are typically four phases: accumulation, markup, distribution, and markdown. The ‘euphoria' phase is the final stage of a bull market, characterized by extreme optimism and FOMO (fear of missing out) among investors. This is when prices reach unsustainable levels and are driven more by hype and speculation rather than fundamental value. In the past, this phase has often led to a sharp correction and the start of a bear market.
The Equilibrium Phase
The ‘equilibrium' phase is the calm before the storm, where prices stabilize after a period of sharp growth. This is when long-term holders of Bitcoin (known as ‘hodlers') are able to break even or make a profit on their initial investment. The level at which this occurs is known as the ‘cost basis' and can serve as a strong psychological support level for the market.
Bitcoin's Recent Consolidation
Over the past few weeks, Bitcoin has been trading around the $60,000 mark, which is close to the long-term holder cost basis level. This suggests that we may be entering the ‘euphoria' phase of the bull market, where prices are driven more by hype and speculation rather than fundamental value.
Keep an Eye on These Crypto Tickers and Hashtags
As Bitcoin approaches its historical euphoria phase, it's important to keep an eye on other cryptocurrencies and trending hashtags in the crypto space. Some top crypto tickers to watch include ETH, BNB, and ADA. Popular hashtags such as #crypto, #bitcoin, and #hodl can also provide valuable insights into market sentiment and potential price movements.
Stay Informed and Stay Ahead
As with any investment, it's important to stay informed and do your own research before making any decisions. With the crypto market constantly evolving, it's crucial to stay ahead of the game and be aware of any potential risks or opportunities. By keeping an eye on on-chain data, market trends, and social media buzz, you can make more informed decisions and potentially maximize your gains in the ever-changing world of crypto. So stay tuned and stay informed!
Sentiment Result : Positive
