Crypto analysts have been closely monitoring the recent sideways movement in the cryptocurrency market, which has seen the total market value of cryptocurrencies stay around $2.5 trillion for the past three months. While some market watchers are divided on whether the current cycle is over, one analyst, ELI5, has identified three on-chain indicators that suggest a new bull market might be on the horizon.

ELI5's analysis, posted on X on May 19, focuses on Bitcoin's market dominance, the Bitcoin MVRV Z score, and the Puell Multiple. Historically, bull markets in crypto begin with high Bitcoin dominance, as most investors sell their altcoins during the preceding bear market cycle. However, according to TradingView, Bitcoin's market dominance is still just above 56% and has been above 50% since October 2023, indicating that the market is not yet in the alt season phase that typically signals the end of a bull cycle.

The Bitcoin MVRV Z score, which compares the current market value of Bitcoin to its historical average value, usually peaks around 6 during cycle highs. According to blockchain data analysis platform LookIntoBitcoin, the score is currently less than half of that and hasn't risen above 6 since March 2021, suggesting that there is still room for further growth.

The Puell Multiple, another indicator that aligns with cycle peaks, has yet to show similar signs. This metric is calculated by dividing the daily value of mined Bitcoin by its annual moving average. Coinglass reports that the Puell Multiple dropped below 1 after the halving event on April 20, and peaks above 3 typically align with cycle highs, but it only reached 2.4 during the mid-March 2024 price rise.

In addition to these indicators, LookIntoBitcoin charts showing how much Bitcoin is held by different groups based on HODL Waves also point to a bullish trend for Bitcoin. The Realized Cap HODL Waves offer a macro perspective on how much Bitcoin recent buyers are holding compared to the past. The decline in peaks among newer holders suggests that selling pressure has lessened, leaving room for further gains.

ELI5 commented on the situation, stating, "There are fewer newcomers to Bitcoin, and they are more likely to panic sell. It looks like there's still potential for growth."

In conclusion, despite the recent sideways movement in crypto markets, several key blockchain indicators point to the beginning of a new bull market. High Bitcoin dominance, a low MVRV Z score, and the Puell Multiple not yet peaking, along with positive trends in HODL Waves, suggest that the market could see further gains. Investors should keep a close eye on these indicators to gain a clearer picture of where the market is headed and make informed decisions about their investments.