On-Chain Data Signals the Start of a Mighty Crypto Bull Run

Bitcoin's market dominance surpasses 55% in the market

Crypto enthusiasts are buzzing with anticipation as on-chain indicators suggest a potential bull run brewing just beneath the surface of the current consolidation phase. 

The crypto market is showing strong signs of a potential bull run, fueled by significant recoveries in Bitcoin prices and increasing market greed. Today, Bitcoin has surged to $71,000, just 4% shy of its all-time high of $73,794. Additionally, Bitcoin's market dominance has climbed to 54.88%, indicating a potential early bull run.

Market Sentiment and Bitcoin Dominance

Recently, market sentiment has shifted from weeks of neutrality to Extreme Greed. This shift suggests that investors are becoming more confident in the crypto market. Bitcoin's price recovery has been substantial, and it is now trading at $70,000, close to its all-time high. This upward trend in Bitcoin prices is a key indicator of a potential bull market.

Furthermore, Bitcoin's market dominance has surged to 54.60%, the highest level in three years. Historically, a bull run begins when Bitcoin's dominance surpasses 57%. This surge in dominance suggests that Bitcoin is regaining its position as the leading cryptocurrency, which could pave the way for a broader market rally.

Bitcoin MVRV Z score and HOLD

The Bitcoin MVRV Z score, which compares current Bitcoin capitalization to its historical average value, indicates that Bitcoin is halfway to its peak score of 2.56. This score has not been close to 6 since the 2021 bull run. The rising MVRV Z score suggests that Bitcoin's value is increasing relative to its historical average, a positive sign for a potential bull market.

Additionally, the Bitcoin HODL waves data shows a decline in the number of new BTC holders. This decline suggests that fewer new investors are entering the market, which can reduce selling pressure. Long-term holders, who are less likely to sell during downturns, now dominate the market. This shift in investor composition could lead to more sustained price increases as selling pressure diminishes.

RHODL Ratio

The RHODL ratio, which compares recently bought BTC to BTC purchased a year or two ago, indicates that current buyers are paying more for their BTC. This suggests that the market is reaching a top mark, as higher prices paid by recent buyers often signal increased demand and market confidence. The RHODL ratio is a useful indicator of market sentiment and can provide insights into potential price trends.

Miners’ Position, Puell Multiple and Open interest

Over the past week, long position traders have dominated, with funding rates reaching 0.00869196.

Over the past week, open interest surged by 11.55%, signaling intensified market activity and volatility, bolstering the prevailing price trend. Noteworthy is the liquidation of $50,661,113 in short positions in the last 24 hours, contrasting sharply with the $8,808,926 in long positions.

The exchange reserve dropped by 1.36% over the past week, suggesting reduced selling pressure. Miners are moderately selling their holdings, with the Miners’ Position Index at -0.6565, marking a 39.62% increase in 24 hours.

The Puell Multiple indicates miners’ revenue is moderate at 0.8786, up 2.27% in 24 hours. Long-term holders exhibit low activity, with a Binary CDD of 0.1021, suggesting they prefer to hold their coins.

The bull run holds promise for significant gains, resembling more of a marathon fueled by strong market momentum rather than a sudden sprint. Despite recent market turbulence, investors remain optimistic, hoping for a rally to recover losses. While forecasts suggest a bull run extending into mid-2025, current on-chain indicators and expert analysis suggest the possibility of an earlier bullish surge.

Also Read: Unlocking the Secrets: What's Fueling the Crypto Market's Surge?