TL;DR Bitcoin’s Pre-Euphoria phase mirrors past cycles, setting the stage for a potential explosive rally. BTC remained range-bound between $114K support and $117K resistance before a sudden drop on Monday morning. Bearish patterns form on the daily chart, raising short-term risk despite bullish long-term indicators. On-Chain Signal Points to New Market Phase Bitcoin has entered a stage known as Pre-Euphoria, according to CryptoQuant analyst Crazzyblockk. The signal comes from a metric that measures the 30-day difference between long-term and short-term holder MVRV ratios. This pattern has appeared in every major bull cycle before Bitcoin’s strongest price moves. The same setup occurred before the parabolic rallies in 2013, 2017, and 2021. Current MVRV levels are rising, but still remain below the range where previous cycles topped. “We’re not at overheated levels yet,” the analyst said . This suggests that the market is still in the early part of its upward move. Remarkably, Bitcoin’s past cycles show a clear pattern. A period of accumulation typically builds up ahead of a strong breakout. These periods, now referred to as Pre-Euphoria zones, tend to last for several months before prices move quickly toward new highs. Source: CryptoQuant The market is showing a similar structure now. Since bottoming out in 2022, the price action has followed the same path seen before earlier peaks. The MVRV spread continues to trend upward, with long-term holders seeing gains while short-term holders are still catching up. This is a common dynamic before major rallies. Key Price Levels Define Current Market Range According to market analyst Rekt Capital, Bitcoin was trading within a narrow range until earlier this morning. The $114,250 level has held as strong support over several weekly closes. However, that line gave in on Monday when BTC flash-crashed to $112,000 and remains below $113,000 as of press time. At the same time, resistance near $117,290 continues to block upward progress. This level has not yet been broken, creating a short-term range between these two price points. A breakout above $117,290 would mark a shift in momentum. Bearish View Raises Short-Term Risk While on-chain signals point upward, some traders are watching for a possible drop. Analyst Captain Faibik noted that a rising wedge on the daily chart has broken down. A bearish flag pattern is now forming, which he believes could lead to lower prices. “Another bearish wave incoming soon so be ready,” they warned. They also pointed out that Bitcoin has already dropped 15% since early August, which trapped many late buyers. Faibik added that some large holders are moving into altcoins, shifting their exposure while BTC’s price remains uncertain. The post Bitcoin’s Final Buy Zone? Pre-Euphoria Signal Flashes Bullish appeared first on CryptoPotato .
