Five On-Chain Indicators Pointing to Potential Crypto Bull Run

crypto bull run

Despite the crypto markets trading sideways for the past three months, at least five on-chain indicators suggest a bull market may be imminent, according to analyst “ELI5 of TLDR.”

Since late February, the total market capitalization of cryptocurrencies has hovered around $2.5 trillion, sparking debate among market observers about whether the current cycle is over. However, these five indicators indicate it might just be beginning.

Bitcoin Market Dominance Above 56%

Historically, crypto bull markets start with high Bitcoin dominance, as traders shift from altcoins to BTC during bear markets. Bitcoin’s market dominance is currently over 56%, maintaining a majority share since October 2023, as reported by TradingView. This high dominance suggests the bull market’s initial phase.

Bitcoin MVRV Z-Score Under Six

The MVRV Z-score, comparing Bitcoin’s market value to its historical average, typically peaks around six during market tops. Currently, it is less than three and hasn’t surpassed six since March 2021, indicating room for growth.

Puell Multiple Below Three

The Puell multiple, which assesses the value of Bitcoin mined daily against its yearly average, peaks over three during market tops. Currently, it is below one, showing potential for further upward movement. During the mid-March 2024 price pump, it only reached 2.4.

Hodl Waves Indicate Bullish Sentiment

Charts tracking BTC held by various cohorts suggest a bullish outlook. Declining peaks in younger bands indicate reduced selling pressure, implying more room for gains. ELI5 noted that recent buyers are less committed, hinting at the potential for upward movement.

Bitcoin Miner Revenue Per Hash

The fifth indicator, miner revenue per hash, reflects miners’ earnings. While it trends down over time with increasing network difficulty, past spikes to $0.3 per terahash coincided with market peaks, suggesting bullish conditions.

These five indicators collectively suggest that the crypto bull market may just be getting started.

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