Since the start of the year, Bitcoin’s price has surged by over $5,000, reclaiming the $20,000 price range, as a result of this, several analysts are now predicting if or not the asset class is out of its quagmire and will continue to price higher.

An analytics company – CryptoQuant has offered some insight into key on-chain signals that could signal the start of a bull run.

Shortly after reports stating that the supply of bitcoin held on centralized exchanges had dropped to a multi-year low, CryptoQuant began to outline the movements between different trading venues as the first positive sign for BTC to rally in price.

In clearer terms, the analysts believe that traders have entered a “risk-on” mode, following the transfers of assets from spot to derivatives platforms, which signifies “the beginning of a new bull run.”

The next factor considered is the MVRV ratio, which shows if the price of BTC is under or overvalued when comparing the actual market cap with the market price of the asset.

Another factor is the Net Unrealized Profit/Loss (NUPL) which is close to the 365-day MA and suggests the same as the MVRL.

The Puell Multiple is an important factor to be considered– it shows the ratio of the daily dollar worth of newly issued BTC to their one-year MA. It is displaying positive signs as for the first time in over two years, BTC’s price passed its 365-day MA.

Last but not the least, is CryptoQuant’s P&L index, which is the combination of several indicators (NUPL, the MVRV ratio, and LTH/STH SOPR) all rolled into one, and at the moment is“close to giving a buying signal for BTC.”

However, the company mentioned that the Index is still showing bitcoin as expensive in the short term, but it’s on the verge of changing the tide.
If we can recall, Glassnode also reported the early signs of the start of an impending bull market after the bear cycle that lasted for almost a year.

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