Despite the cryptocurrency market's sideways movement in the last three months, analyst "ELI5 of TLDR" points out five on-chain indicators indicating a potential start of a new bull market. Over this period, the total market capitalization of cryptocurrencies has hovered around $2.5 trillion, leading to differing opinions among market observers regarding the current cycle's status.

High Bitcoin Market Dominance

One crucial indicator is Bitcoin's market dominance, which remains above 56% according to TradingView. Historically, high Bitcoin dominance indicates the onset of a crypto bull market as traders consolidate into BTC after a bear market. The current dominance level suggests that an altcoin season, typically signaling the later stages of a bull cycle, has not yet commenced.

MVRV Z Score Below 6

The Bitcoin MVRV Z score, comparing market value to historical average value, usually peaks at around 6 during bull market tops. According to LookIntoBitcoin charts, this score is currently below 3 and hasn't surpassed 6 since March 2021, indicating potential for further growth.

Puell Multiple Under 3

The Puell Multiple, measuring the daily value of Bitcoin mined against its yearly moving average, also supports a bullish outlook. Coinglass reports that the Puell Multiple has not exceeded 3, a level typically observed at cycle peaks, since the 2024 price surge in mid-March, where it only reached 2.4.

HODL Waves Suggest Bullish Sentiment

HODL Waves, tracking how much BTC is held by different investor cohorts, depict a bullish trend. The Realized Cap HODL Waves indicate that selling pressure has diminished, as younger bands of holders are less inclined to panic sell, suggesting potential for further price increases.

Cumulative Value-Days Destroyed (CVDD) Peaks

The CVDD metric, monitoring the transfer of Bitcoin from long-term holders to new investors, also indicates a bullish trend. While peaks in this metric can signal market tops, current levels suggest there is still room for upward movement.

Market Status

Currently, Bitcoin is trading at $66,668, down 10% from its mid-March all-time high. Despite this downturn, the convergence of these five on-chain indicators implies that the crypto bull market might just be commencing, offering a positive outlook for investors.