After dedicating over a thousand hours to on-chain analysis, an expert has uncovered compelling evidence suggesting a looming bull market. This article delves into the seven key findings that indicate the bullish trend and provides a comprehensive overview of the current state and potential future of various cryptocurrencies.

Part 1: Analyzing the Current versus Past Drawdowns

Initially, the cryptocurrency market experienced a significant 75% decline from its all-time high (ATH) in early 2023. However, the current situation depicts a promising recovery. Bitcoin (BTC) is now only 40% below its ATH, Ethereum (ETH) 55%, and altcoins 51%. Even the supply of stablecoins has decreased by 24%, illustrating a general rebound from their ATH.

Part 2: The Resurgence of Bitcoin

Bitcoin has witnessed a remarkable 172% surge, with a minimal correction of less than 20% in 2023. The rally commenced post the breach of the $30k mark in late October. This breakthrough was spurred by two main factors: the $30k level acting as a crucial psychological support prior to major market events and the average investment basis of Bitcoin enthusiasts being around this figure.

Part 3: The Emergence of Ordinals

Ordinals, a new aspect of the Bitcoin ecosystem, are thriving. The fees generated from these inscriptions have contributed significantly to miners' revenue, reaching levels comparable to the highs of the 2017-2021 bull markets.

Part 4: Ethereum's Performance

Ethereum's on-chain metrics show a stable daily active address count, a 14% increase in transaction counts, and a 61% surge in the volume of ETH transferred. Additionally, the Total Value Locked (TVL) in Layer 2 solutions and the volume of staked ETH have also seen significant increases.

Part 5: The Derivatives Market Dynamics

In the derivatives market, options trading on Deribit has overtaken futures in open interest. Additionally, regulated platforms like the Chicago Mercantile Exchange (CME) have surpassed Binance in open interest, indicating growing institutional involvement.

Part 6: The State of Stablecoins

The supply of stablecoins has decreased by 26% since March 2023 due to various factors, including regulatory pressures and shifts in capital. However, there has been a recent uptick in interest, with Tether (USDT) regaining its position as the market leader.

Part 7: Long-Term Trends in Bitcoin

A significant portion of Bitcoin remains inactive, with long-term holders controlling the majority of the supply. These 'diamond hands' investors have increased their holdings, while short-term holders have reached an all-time low.

Part 8: Summarizing the Crypto Market Outlook

The market is showing signs of recovery, with Bitcoin breaking through the $30k barrier, increasing interest in derivatives, and growth in stablecoin supplies. The anticipation of a U.S.-based Exchange-Traded Fund (ETF) and the upcoming Bitcoin halving in April 2024 further bolsters the bullish outlook for 2024.