Five On-Chain Indicators Suggest a New Crypto Bull Market Is Just Beginning
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Bitcoin Market Dominance Remains High
One key indicator is Bitcoin's market dominance, which remains above 56% according to TradingView. Historically, high Bitcoin dominance signals the start of a crypto bull market as traders consolidate into BTC after a bear market. The current dominance level suggests that an altcoin season, which typically marks the later stages of a bull cycle, has not yet begun.
MVRV Z Score Under 6
The Bitcoin MVRV Z score, comparing market value to historical average value, usually peaks at around 6 during bull market tops. As per LookIntoBitcoin charts, this score is currently below 3 and hasn't surpassed 6 since March 2021, indicating potential for further growth.
Puell Multiple Below 3
The Puell Multiple, which measures the daily value of Bitcoin mined against its yearly moving average, also supports a bullish outlook. Coinglass reports that the Puell Multiple has not exceeded 3, a level typically seen at cycle peaks, since the 2024 price pump in mid-March, where it only reached 2.4.
HODL Waves Indicate Bullish Sentiment
HODL Waves, which track how much BTC is held by different investor cohorts, show a bullish trend. The Realized Cap HODL Waves suggest that the selling pressure has been exhausted, as younger bands of holders are less likely to panic sell, indicating room for further gains.
Cumulative Value-Days Destroyed (CVDD) Peaks
The CVDD metric, which monitors the transfer of Bitcoin from long-term holders to new investors, also indicates a bullish trend. Peaks in this metric can signal market tops, but current levels suggest there is still potential for upward movement.
Market Status
At the time of writing, Bitcoin is trading at $66,668, down 10% from its all-time high in mid-March. Despite this decline, the combination of these five on-chain indicators suggests that the crypto bull market may just be beginning, offering a positive outlook for investors.