In the cryptocurrency space, the Bitcoin bull cycle is one of the most anticipated seasons, as several investors patiently hope for the premier cryptocurrency to climb to unprecedented heights again. With the current market climate on a positive shift, many crypto enthusiasts believe that Bitcoin might be on the verge of a bull run that could drive the coin’s price to levels higher than its current all-time high.
Interestingly, a pseudonymous crypto enthusiast and analyst have offered their hypothesis on the possibility of a bull run for the number one cryptocurrency.
These Three Indicators Signal An Incoming Bull Run
In a recent report, a CryptoQuant analyst with the pseudonym Tarekonchain assessed three major on-chain indicators and their correlation with the current market condition. The analyst acknowledged that Bitcoin might be gearing up for another bull run based on the readings of these indicators.
The first indicator is the Net Unrealized Profit/Loss (NUPL) metric, which measures the market’s profit or loss state. A rising NUPL value signals an increasingly profitable market and often correlates with bullish sentiment. According to Tarekonchain;
The current trajectory of NUPL suggests an uplift in market optimism, which is a typical precursor to a bull market.
BTC's Net Unrealized Profit/Loss | Source: CryptoQuant
The CryptoQuant analyst also mentioned the Market Value/Realized Value (MVRV) ratio, which compares Bitcoin’s market capitalization to its realized capitalization. A bearish market condition is characterized by a low MVRV ratio, which is often associated with undervaluation. Tarekonchain noted in the report:
The recent upward movement in the MVRV ratio from these lower levels may signal that the market is transitioning from undervaluation to a phase where growth is anticipated, hinting at the start of a bull cycle.
Finally, the CryptoQuant analyst highlighted the Puell Multiple metric, which correlates the daily issuance value of Bitcoin to its 365-day moving average. Historically, low Puell Multiple values often point to market bottoms, which often present optimal buying opportunities in anticipation of a bull cycle.
However, a steady increase in the Puell Multiple values may suggest a decline in selling pressure and “increased profitability for miners,” aligning with the potential start of a Bitcoin bull cycle.
Bitcoin Price Overview
As of this writing, the Bitcoin price stands at $42,174, reflecting a 1% price decline in the past 24 hours. Meanwhile, the premier cryptocurrency struggled to hold above the 2023 high of $44,000 over the past week.
According to data from CoinGecko, BTC’s value has dipped by nearly 5% in the last seven days. Nevertheless, the cryptocurrency retains its position as the largest asset in the sector, with a market cap of roughly $825.4 billion.
Bitcoin price stalls around $42,000 on the daily timeframe | Source: BTCUSDT chart on TradingView