Along with seeing a recovery in crypto market sentiment , several other things have indicated a possible increase. Reporting from Coingape, since the last few days, market sentiment has changed to greed from a neutral position for weeks.
In addition, significant price spikes occurred in cryptocurrencies , including Bitcoin. In this article, let's discuss five important signs that indicate the early arrival of the 2024 crypto Bull Run !
Bitcoin Market Domination
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According to the Coingape page (20/5/24), Bitcoin has experienced a substantial recovery recently and is currently trading at $67,146.49. Only 9% away from ATH at $73,750.07; if this trend continues, the price may rise even higher.
More importantly, based on Tradingview data, Bitcoin's dominance has surged to 55.87%, the highest dominance in the past three years, which is the first sign of an early bull run. This is because historical data reveals that the Bull run started when Bitcoin's dominance soared with a dominance of more than 56%.
Rather MVRV From Bitcoin
As per the LookIntoBitcoin chart, Bitcoin's MVRV Z score reveals the peak moments of the cycle by comparing Bitcoin's current capitalization with its historical average value.
The peak score of this comparison is around 6, and Bitcoin data currently falls somewhere in the middle. Bitcoin's MVRV Z score is nowhere near 6 after its 2021 bull run.
Bitcoin HODL Wave
Furthermore, dBitcoin HODL wave data is bullish for Bitcoin after comparing new BTC holders with old BTC holders.
As the number of new BTC holders decreases, it is possible to witness more profits as selling pressure decreases. This is because new holders are more susceptible to selling once conditions turn unfavorable or they see temporary gains.
RHODL ratio
The RHODL ratio is a comparison of recently purchased BTC with BTC purchased one or two years ago.
As per current data, BTC buyers are paying more for their BTC than they did two years ago. So, this is an indication of the market reaching its highest value.
Level Puell Multiple
Puelle multiple shows the difference between short-term BTC miner earnings and long-term earnings trends. Typically, the peak is formed when the level is at 3, and the highest level this year was 2.5 during March.
At the time this article was written, the value was below 1, after falling due to Bitcoin's halving. Its value has increased recently and will contribute to the rise.
An ELI5 crypto analyst from TLDR said that with high Puell, miners are making a lot of money, aligning with the cycle top. He said that “the previous cycle had two spikes. Now, we complete the first one. Another one to come before the top, it seems.”
Overall, the bull run brings the biggest gains to the market, but it is not a one-day event as it requires a big market push. As the crypto market struggles for weeks, investors are eyeing gains to cover losses.
Even so, a bull run is anticipated later this year, lasting until mid-2025. However, several on-chain indicators and crypto analysts, ELI5 of TLDR, have indicated the possibility of an earlier bullish situation as the market is ready.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.