% 1.72
BTC Dominance:
% 0.32
Market Cap:
$2.48 T
% 1.89
Fear & Greed:
72 / 100
$ 68.470
BTC Dominance:
% 54.1
Market Cap:
$2.48 T

Bullish Signs Emerge for Bitcoin: On-Chain Indicators Signal Potential Upswing

The Bull Is Coming In Bitcoin

While the overall crypto market remains range-bound at $2.5 trillion, there are some indicators that suggest the Bitcoin market may be at the beginning of the bull market. Analyst ELI5 of TLDR recently provided five on-chain signals that Bitcoin is gearing for a price upswing. Nevertheless, Bitcoin’s overall market share is still above 56%, a number it has sustained since October 2023. This shows that a majority of traders have disposed of their altcoins during the previous bear market cycle in advance of the bull market as history suggests.

Key On-Chain Indicators: HODL Waves, MVRV Z Score and Puell Multiple.

One important metric is Bitcoin MVRV Z score – the ratio of the current market valuation to the average market valuation of the cryptocurrency. This score usually increases to about 6 during cycle tops, but is currently at less than half of this value, signaling potential for growth. The data from LookIntoBitcoin charts indicate that 6 has not been breached since March 2021.

Another important metric is the Puell Multiple; this has historically correlated well with cycle peaks but has not yet crossed the important 3 level. This multiple, which is derived by dividing the daily value of Bitcoin mined by the yearly average of that value, increased below 1 after the halving on April 20, as per Coinglass. It only reached 2. 4 in the middle of the price increase in March 2024.

HODL Waves charts showing the number of Bitcoins held by various groups of investors also show a positive outlook. The Realized Cap HODL Waves reduce the number of peaks among real buyers, which means that selling pressure could be complete. ELI5 responded: “More BTC newcomers are less involved and have bigger probabilities to panic sell. I guess we might still have the chance to go up.”

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Revenue of the Miner and Contrarian Signals.

More specifically, the possible peaks of the market are indicated by the miner revenue per hash, a variable showing the profitability of Bitcoin mining. Typically, this metric increases to $0. 3 per TH/s per second have correlated with past cycle crests.

On the other hand, there are KPIs that may suggest possible market bubbles. Another parameter is the RHODL ratio, which correlates the average cost of recently purchased coins with the cost of buying them 1-2 years ago; if new buyers pay much more, this may be a sign that the market is overbought and is ready to fall. In the same vein, the CVDD, which measures the cumulative amount of value-time destruction, seems to have reached its maximum. This might suggest that a major migration of old coins may lead to changes in the market peak.

Current Market Status

According to the latest information, Bitcoin is $67,000 losing 9% of its value compared to mid-March highs. The on-chain metrics seem to indicate that Bitcoin may have reached its peak while the majority of the market indicators, ranging from MVRV Z score to Puell Multiple to HODL Waves, are extremely bullish and hint at a possible beginning of the Bitcoin bull cycle.

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