BTC Whale Activity
The flow of whales we see in Blocktrends Research is similar. The number of addresses of whales holding more than 1000 BTC is constantly increasing. According to Glassnode data, the number of such addresses has now surpassed 1.512k.
Is the Bitcoin bear market finally coming to an end?
Currently, over $19.7 billion has flowed into Bitcoin and Ethereum. These flows are important because they signal a current bull market for the crypto leaders. Notably, popular X Crypto market analyst Ali noted that BTC is currently trading between $18,000 and $65,000, which is roughly the same level of inflows that occurred in December 2020 before the previous surge.
Using three on-chain cycle indicators, Cryotoquant’s on-chain data analyst Tarekonchain concluded that BTC is currently in the early stages of a bull market. The charts he cited are NUPL, MVRV, and Puell Multiple.
NUPL, Neutral→Greedy phase
Looking at NUPL first, the indicator is currently rising from the ‘neutral’ to ‘greedy’ phase. This looks a lot like the pattern of past bull markets. The Net Unrealized P&L is an indicator of the market’s profit and loss status. A rising NUPL indicates a high probability of further gains, which is a typical precursor to a bull rally.
MVRV Ratio Has Risen
The MVRV ratio has recently risen above the downtrend line and is showing signs of further growth. This indicates that the market’s potential for further upside is growing. The MVRV ratio is a metric that compares BTC’s market capitalization to its realized market capitalization. When the MVRV is lower than 1, it is often read as a bear market. Recently, the indicator has been above 1.
The Puell Multiple points to a gradual uptrend. This can be interpreted as a sign of decreasing selling pressure and increasing profitability for miners. Puell Multiple is the value of coins mined per day divided by the average daily mining volume over the past year. It shows how profitable miners have been over the past year.
Currently, BTC is trading at $42.79K according to CoinmarketCap, down 0.34% from the previous day.
View other articles: On-chain: BTC Shows Signals of Bull Market in 2024
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