CryptoQuant, a market intelligence platform, has identified on-chain metrics that could suggest a bottoming out of the bitcoin (BTC) price and a potential rally for cryptocurrencies. The platform's Bitcoin Bull-Bear Market Cycle indicator currently signals the least bullish state since March 2023. However, with BTC hovering around $61,000, an increase in bullish momentum is needed for prices to recover.

Bitcoin demand growth also needs to accelerate to Q1 levels. Currently, permanent Bitcoin holders are purchasing BTC at a monthly pace of 72,000 BTC, significantly less than the Q1 pace of 160,000 BTC. Increased buying from this group could indicate a price bottom.

Bitcoin's ultimate price support level is $56,000, based on Metcalfe price valuation bands. A decline below this could trigger a major correction. Positive on-chain unrealized profit margins could signal incoming rallies, while an increase in Bitcoin flow from other exchanges to Coinbase could indicate an uptick in U.S. investor demand, often correlating with higher prices.

Finally, an acceleration in stablecoin liquidity, indicated by the 60-day growth of Tether's (USDT) market cap, suggests an inflow of capital into the market, a crucial metric for price increases.