In the cryptocurrency space, the bitcoin bull cycle is one of the most anticipated seasons as several investors are patiently waiting for the leading cryptocurrency to once again reach unprecedented heights. With the current market climate in a positive turn, many cryptocurrency enthusiasts believe that bitcoin could be on the verge of a bull run that could take the coin's price to levels above its current all-time high.
Interestingly, a pseudonymous cryptocurrency analyst and enthusiast has offered his 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 under the pseudonym Tarekonchain evaluated three leading on-chain indicators and their correlation with the current market condition. The analyst acknowledged that bitcoin could be preparing 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 profit or loss status of the market. A rising NUPL value indicates an increasingly profitable market and often correlates with bullish sentiment. According to Tarekonchain;
NUPL's current trajectory suggests a rise in market optimism, which is a typical precursor to a bull market.
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btc's Net Unrealized Profit/Loss | Source: CryptoQuant
The CryptoQuant analyst also mentioned the market value to realized value ratio (MVRV), which compares bitcoin's market capitalization to its realized capitalization. A bear 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 indicate that the market is moving from undervaluation to a phase of anticipated growth, suggesting the beginning of a bullish cycle.
Finally, the CryptoQuant analyst highlighted the Puell Multiple metric, which correlates bitcoin's daily issuance value with its 365-day moving average. Historically, low Puell Multiple values often point to market lows, which often present optimal buying opportunities in anticipation of a bull cycle.
However, a steady rise in Puell Multiple values may suggest a decrease in selling pressure and an “increased profitability for miners,” aligning with the possible start of a bitcoin bull cycle.
bitcoin Price Overview
At the time of writing, the price of bitcoin stands at $42,174, reflecting a 1% price drop in the last 24 hours. Meanwhile, the leading cryptocurrency struggled to stay above the 2023 high of $44,000 over the past week.
According CoinGecko data, the value of btc has fallen almost 5% in the last seven days. However, the cryptocurrency maintains its position as the largest asset in the sector, with a market capitalization of approximately $825.4 billion.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/Bitcoin39s-39bullish-cycle-is-underway39-confirms-analyst-with-these-3" alt="bitcoin” width=”2174″ height=”1434″/>
bitcoin price stalls around $42,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
