Despite crypto market swings, key indicators show early signs of a bull run

• HODL waves, NVT and MVRV ratios show strong signs of a bull run soon.
• Other indicators like stablecoin reserves also support the notion.

The cryptocurrency market has never been for the faint-hearted. After what felt like an eternity at the hands of the bears, January this year saw a flip from the bulls after the approval of US spot Bitcoin [BTC] ETFs.

The following weeks saw Bitcoin shoot up and altcoins follow its lead, causing the community to start preparing for a bull run.

But that hope is now diminishing as Bitcoin seems to be sitting comfortably in the $60Ks, showing no signs of breaking another all-time highs.

But on-chain data is showing us that a bull run is, indeed, still happening. Soon, in fact.

Let’s take a look.

A shift in the crypto market

As per AMBCrypto;s analysis of Glassnode’s HOLD Waves, there was a decrease in short-term trading activity and an increase in medium to long-term holding. 

This trend is typically a bullish signal, because fewer holders are willing to sell, even as prices rise, anticipating higher future values.

Source: Unchained.com

Next, AMBCrypto examined the network value to transactions ratio (NVT). Since 2024 started, the NVT ratio has trended downwards towards the end of the observed period.

A decreasing NVT ratio is interpreted as a bullish signal by experts. Therefore, based on the data we got, there seemed to be a strong indication that a bull run was on the way.

Source: CryptoQuant

Turning our attention to the MVRV ratio, we saw a significant fluctuation, with periods where it rose above and dips below the baseline (1.0 ratio). 

The recent increase in both the price and the MVRV ratio, especially with the MVRV ratio rising sharply from a recent dip and maintaining levels above the baseline, indicated a strong bullish sentiment in the market.

Source: Santiment

Stablecoin reserves and on-chain derivatives activity

AMBCrypto’s look at the stablecoin reserves showed that the market had already set the stage for a bullish environment.

It implies that a considerable amount of capital has been redirected into more volatile cryptos, potentially driving up their prices.

Source: CryptoQuant

Coinglass derivatives data shows a super heightened market activity, a bullish sign because it suggests increased buying interest.

Bitcoin’s exchange balance was down at press time, decreasing supply and pushing prices up in the long-term.

Moreover, at a value of 70, the index was in the “Greed” range, indicating that market sentiment was bullish. 

Source: Coinglass

The question of whether or not a bull run is still on its way has only one answer:-  Yes. Yes, it very much is. But don’t take our word on it — Remember to DYOR, as always.