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- Bitcoin’s MVRV signals a clear Pre-Euphoria phase, historically a direct precursor to the final bullish wave of each major cycle.
- Data shows the market is approaching a critical transition from Pre-Euphoria to Euphoria, often triggering the strongest momentum phase.
On-chain analyst Crazzyblockk on CryptoQuant points out that the MVRV metric between long-term (LTH) and short-term (STH) Bitcoin holders is entering a phase known as Pre-Euphoria. Historically, this phase typically occurs just before the most powerful, final bullish wave.
However, at the time of writing, BTC is trading at about $112,822, with a daily decline of 2.51%, a weekly loss of 2.30%, and a 3.52% correction over the past 30 days. These figures may not seem impressive, but behind the scenes, there are interesting signals that could determine the next move.
Pre-Euphoria Phase Signals Market Still Has Room to Grow
Looking back, the crypto market in 2013, 2017, and 2021 consistently exhibited a similar pattern. There was a long period of accumulation in the Pre-Euphoria phase, marked on the yellow chart, followed by a major rally known as Euphoria—marked in the red zone—where the price reached the cycle peak.
Current market conditions are thought to be following this same pattern. Since its 2022 bottom, Bitcoin has been said to be building a solid foundation for its next move.
Interestingly, although the MVRV divergence continues to rise, the extreme levels that typically signal an overheated market have not yet been reached. Put simply, the market still has room to climb, which is why many analysts argue the top of this bull run is still ahead.
Not only that, this analysis seems to suggest that investors still have a golden opportunity before the market fully accelerates.
On the other hand, CNF reported last week that the Bitcoin Scarcity Index on Binance jumped for the first time since June, hinting at heavy whale buying or a liquidity squeeze.
However, history also shows that spikes in the scarcity index are often short-lived, followed by a cooling period or even a market correction.
Bitcoin Poised for the Final and Most Powerful Wave
Furthermore, analysts believe the market is currently at a critical juncture, preparing to transition into the Euphoria phase. This phase typically sees the most aggressive price surges, leading many to define this moment as the “final wave.” Based on the recurring pattern, the possibility of a major parabolic rally is considered increasingly imminent.
Interestingly, voices of optimism also came from prominent industry figures. Michael Saylor asserted that Bitcoin is transforming into digital capital due to increasing institutional inflows and decreasing volatility. He even believes Bitcoin will be able to outperform the S&P 500 index with an annualized return of nearly 29% over the next two decades.
This statement certainly reinforces the narrative that the next phase of euphoria is not just a market illusion, but may be part of Bitcoin’s long-term journey as a global asset.
