5 of 7 on-chain indicators suggest the #BullRun🐂 is just beginning

Bullish Indicators for Bitcoin

Despite recent market consolidation, on-chain metrics like the Bitcoin MVRV Z score, Puell Multiple, and hodl waves signal a bullish outlook. Analyst "ELI5 of TLDR" points to five key indicators suggesting the bull market may be starting.

Key Indicators

1. Bitcoin Market Dominance

- Historically, high Bitcoin dominance marks the start of bull markets, with altseason signaling the next stage. Bitcoin’s dominance is currently over 56%, indicating potential for further gains.

2. Bitcoin MVRV Z Score

- The MVRV Z score compares Bitcoin's market value to its historical average, peaking around six during market tops. Current levels are below six, suggesting room for growth.

3. Puell Multiple

- This metric, which divides the daily value of Bitcoin mined by its yearly moving average, aligns with cycle peaks. It has not surpassed three, indicating we have not yet reached the cycle top.

4. Hodl Waves

- Charts showing Bitcoin held by different cohorts suggest reduced selling pressure, with a decline in younger band peaks. This indicates potential for further upward movement.

5. Bitcoin Miner Revenue Per Hash

- Despite decreasing over time with increased network difficulty, spikes in miner revenue per hash have historically aligned with market cycle peaks. Current trends suggest continued growth.

Cautionary Metrics

1. Realized Hodl (RHODL) Ratio

- This ratio compares the average price of recently bought coins to those bought one to two years ago. High values may indicate a market peak, as seen in March.

2. Cumulative Value-Days Destroyed (CVDD)

- This metric tracks the value-time destruction ratio. Peaks in CVDD suggest that many old coins moving simultaneously could signal a market peak.

Current Market Status

- As of now, Bitcoin is trading at $66,668, down 10% from its mid-March all-time high. These on-chain indicators collectively paint a picture of a potentially ongoing bull market, though some cautionary signs exist.

Source - cointelegraph.com