5 On-Chain Metrics Hint at an Impending Bull Market in Cryptocurrency
CryptoNewsTerminal Staff20 May, 2024
5 On-Chain Metrics Hint at an Impending Bull Market in Cryptocurrency
CoinTelegraph reported that on-chain analyst ELI5 of TLDR (@explain_briefly on Twitter) identified five on-chain metrics suggesting a potential bull market on the horizon. These metrics include: 1. Bitcoin Dominance Above 56%: Indicating a strong market share for Bitcoin. 2. MVRV-Z Score Below 0.6: Suggesting the market is undervalued. 3. Puell Multiple Below 0.3: Indicating miners are selling fewer coins, potentially signaling a supply squeeze. 4. Hodl Waves Favoring Long-Term Holders: Showing that experienced investors are holding onto their coins. 5. Recovering Mining Hashrate: Suggesting increased network security and confidence among miners. The combination of these metrics points to the possibility of a shift from the sideways trading pattern of the past three months to a more bullish trend. However, it's important to note that these metrics alone do not guarantee a bull market and should be considered in conjunction with other market factors.
