Despite recent fluctuations in the crypto market, on-chain analytics suggest early signs of an impending bull run. Key metrics point towards a bullish sentiment, indicating that a significant market upswing may be imminent. Here, we explore five prominent signs suggesting the early arrival of a bull run.
1. Bitcoin Market Dominance
Bitcoin has shown a substantial recovery, currently trading at $67,146.49, just 9% away from its all-time high of $73,750.07. According to TradingView data, Bitcoin's market dominance has surged to 55.87%, the highest level in three years. Historical data reveals that a bull run often begins when Bitcoin dominance exceeds 56%. This surge in dominance is a strong indicator that a bull run may be on the horizon.
2. Bitcoin MVRV Z Score
The Bitcoin MVRV Z score, as per LookIntoBitcoin charts, measures the ratio of Bitcoin's market value to its realized value. The score indicates the cyclical peaks by comparing the current Bitcoin capitalization to its historical average value. The peak score is around 6, and Bitcoin is currently halfway to that mark. The MVRV Z score hasn't been this close to 6 since the 2021 bull run, suggesting that Bitcoin is approaching a significant value peak.
3. Bitcoin HODL Waves
The Bitcoin HODL waves data shows the distribution of Bitcoin held by long-term holders versus new investors. A decline in the number of new BTC holders can lead to reduced selling pressure, as long-term holders are less likely to sell during market downturns. The RHODL ratio, which compares recently bought BTC to BTC purchased one to two years ago, indicates that current buyers are paying more for BTC than they did two years ago. This suggests that the market is approaching a top.
4. Puell Multiple Level
The Puell Multiple measures the difference between short-term BTC miner revenue and long-term revenue trends. A peak typically forms when the level reaches 3. The highest level this year was 2.5 in March, but it has since dropped below 1 due to the Bitcoin halving. The value is currently rising, indicating potential for a bull run. Crypto analyst ELI5 of TLDR notes that high Puell levels correlate with cycle tops and anticipates another spike before the final top.
5. Market Sentiment and Recovery
Recent market sentiment has shifted from neutral to greedy, reflecting growing investor confidence. This shift, combined with a significant price surge in cryptocurrencies like Bitcoin, suggests an early arrival of a bull run. As market sentiments improve, the likelihood of sustained positive price action increases.
Final Thoughts
While the bull run promises substantial gains, it is not an overnight event and requires significant market momentum. After weeks of market struggle, investors are hopeful for a bull rally to recoup losses. Although a bull run is anticipated by the end of the year, stretching into mid-2025, current on-chain indicators and expert analysis suggest the possibility of an earlier bullish phase. As the market readies itself, investors should stay vigilant and prepared for potential market shifts.
These signs collectively point towards an imminent bull run, offering a glimmer of optimism for investors and enthusiasts alike.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“