According to Odaily, analyst 'ELI5 of TLDR' has suggested that the cryptocurrency bull market is just beginning, based on five on-chain indicators.
Firstly, Bitcoin's market dominance is over 56%. Historically, the cryptocurrency bull market begins with Bitcoin's strong dominance, with most traders having sold off a large number of altcoins in the previous bear market cycle. Data from TradingView shows that Bitcoin's market dominance is slightly above 56%, and this indicator has been over 50% since October 2023.
Secondly, Bitcoin's MVRV Z-Score is less than 6. According to LookIntoBitcoin charts, the Bitcoin MVRV Z-Score, which compares the current market value of an asset with its historical average, usually reaches a peak of around 6 during cycle peaks. Currently, this indicator is less than half of that, and it has not exceeded 6 since March 2021.
Thirdly, the Puell Multiple has not yet exceeded 3. The Puell Multiple is another indicator consistent with cycle peaks but has not yet reached its peak. This indicator is calculated by dividing the daily value of Bitcoin produced by the annual moving average of this value. According to Coinglass data, the Puell Multiple fell below 1 after halving on April 20. Peaks over 3 usually coincide with cycle tops, reaching only 2.4 during the price increase in mid-March 2024.
Fourthly, HODL Waves data from LookIntoBitcoin is bullish for Bitcoin. The Realized Cap HODL Waves provides a macro perspective on how much Bitcoin is held by those who have recently purchased compared to earlier times. The decline in the peak of the new wave indicates that selling pressure has been exhausted, and there may be more room for growth.
Lastly, Bitcoin miner revenue per hash shows how much miners profit from proof of work. Although it decreases over time with the increase in mining difficulty, ELI5 pointed out that the last two surges to $0.3/Th/s per second occurred during previous market cycle peaks.