Is the crypto bull market over? Review of prevalent on-chain data

The year has been amazing for the crypto market. From the Bitcoin ETF approval to the long crypto slump being over, 2024 has witnessed immense progress.

However, now that Bitcoin has dropped to 62,895 dollars from 73,750 dollars, traders are wondering how to proceed. Is the crypto bull market over? Is the market entering a correction phase? Let’s take a look at popular on-chain data to figure it out.

Currently, there is no primary indication that the bull run is over. Historically, the market has seen BTC circles never stop at previous all-time highs. With the fourth halving due for BTC in April, the market is expected to enter another positive run.

Back in 2020, it took Bitcoin around two months to break through the previous all-time high range. Here are some indications that point toward an optimistic market outlook:

  1. Bitcoin has dropped almost 40% in supply over the past 4 years. Traders are purchasing and holding more BTC than it is being mined. Since more scarcity means more value, Bitcoin’s decreasing supply can help it gain value.
  2. NUPL (Net Unrealized Profit and Loss) is on the LTF side, with no room for HTF. The recent correction has cooled off the NUPL, but it is still on the “greedy” side, with most traders being in profit while holding to earn more profit.
  3. There is low selling pressure in the market without any major sell-off.
  4. LTF is expected to surge in sell pressure, while flows have been bullish even during the correction.
  5. MVRV (Market Cap to its Realized Cap) has also cooled off after a rejection with 2.8 minor resistance. 

As for the Coinbase app, the platform has dropped from under 200 ranks to 500 globally. The Google Trend for Bitcoin has also seen a drop after hitting the third-highest level in three years.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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