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Early Indicators Point to Potential Crypto Bull Run: Key Metrics to Watch

Despite the ups and downs in the crypto market, on-chain analytics are showing early signs of a potential bull run. Let’s explore the key metrics behind this positive outlook.

Recently, market sentiment has shifted from neutral to greedy, and we’ve seen significant price increases in cryptocurrencies, including Bitcoin. Here are five key indicators suggesting an early bull run:

1. Bitcoin Market Dominance
Bitcoin has bounced back and is currently trading at $67,146.49, just 9% below its all-time high of $73,750.07. If this trend continues, prices could rise even further. According to Tradingview data, Bitcoin’s market dominance has surged to 55.87%, the highest in three years. Historical data shows that a bull run often begins when Bitcoin dominance exceeds 56%.

2. Bitcoin MVRV Z Score
The MVRV Z score, as shown in LookIntoBitcoin charts, compares Bitcoin’s current market capitalization to its historical average. The peak score for this metric is around 6, and Bitcoin is currently halfway there. The MVRV Z score hasn’t been this high since the 2021 bull run.

3. Bitcoin HODL Waves
The HODL waves data compares new BTC holders to long-term holders. With fewer new BTC holders, there’s reduced selling pressure, which could lead to more gains. New holders are more likely to sell during unfavorable conditions or after short-term gains.

4. RHODL Ratio
The RHODL ratio compares recently purchased BTC to BTC bought a year or two ago. Currently, buyers are paying more for BTC than they did two years ago, indicating that the market might be reaching a peak.

5. Puell Multiple Level
The Puell Multiple measures the difference between short-term and long-term BTC miner revenue. Peaks usually form at a level of 3, and the highest this year was 2.5 in March. Currently, it’s below 1 but rising, which could contribute to a bull run.

According to crypto analyst ELI5 of TLDR, when the Puell Multiple is high, miners earn well, aligning with market cycle tops. He notes, “Previous cycles had two spikes. We’ve completed the first one, and another might be coming before the peak.”

Final Thoughts
A bull run could bring significant gains, but it’s not an overnight event—it requires a major market push. After weeks of struggle, investors are hopeful for a bull rally to recover losses. While some expect the bull run by the end of the year, extending into mid-2025, a few on-chain indicators and analysts, like ELI5 of TLDR, suggest it might happen sooner. The market seems ready for a bullish phase.

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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