- An analyst has suggested that despite a stagnation in cryptocurrency markets over the past three months, several blockchain indicators imply that a bull market might be on the horizon.
- Since late February, the overall market value of cryptocurrencies has remained around $2.5 trillion, leaving market participants uncertain about the cycle’s continuation.
- “Historically, crypto bull markets kick off with high Bitcoin dominance, as investors shift away from altcoins during previous bear cycles.” – Analyst ELI5.
Explore the latest indicators suggesting a potential bull market in the cryptocurrency space.
Which Indicators Show Bullish Signs?
In a May 19 post, analyst ELI5 highlighted three on-chain indicators that suggest the potential onset of a bull market. Access COINOTAG FINANCE to get the latest financial and business news.
Current Market Dominance of Bitcoin
Current data from TradingView shows Bitcoin’s market dominance slightly above 56%, retaining a majority market share since October 2023.
What Does Bitcoin’s MVRV Z Score Indicate?
The Bitcoin MVRV Z score, which compares the current market value to historical averages, generally peaks around 6 during market cycle highs. According to LookIntoBitcoin, the score is presently under half of that and hasn’t exceeded 6 since March 2021, indicating potential for further growth.
Analysis of the Puell Multiple
Another critical metric, the Puell Multiple, is also yet to reach typical cycle peak levels. This indicator measures the daily value of newly mined Bitcoin against its annual moving average.
User Insights
The Realized Cap HODL Waves charts from LookIntoBitcoin provide additional bullish signals:
- Reduction in young band peaks indicates decreased selling pressure, suggesting room for further price increases.
- Fewer new Bitcoin holders, who tend to panic sell, are a positive trend for market stability.
- Overall holding patterns indicate long-term confidence in Bitcoin’s value.
Conclusion
In summary, despite recent market consolidation, various blockchain indicators point to the early stages of a new bull market. The unique metrics and dominant market behaviors suggest that the crypto market may soon experience significant growth, with Bitcoin at the forefront.
