The year 2023 has turned out to be one of the most favorable years, especially for the crypto industry. The pioneering cryptocurrency, Bitcoin, claimed its trade above $21K for the first time since November 2022. Bitcoin has turned its major resistance of $20K into support as of now. This phenomenon also pushed the global crypto market cap above $1 trillion before sliding down a bit.
At the time of publication, Bitcoin is valued at $20,771 after a fall of 2.11% over the last 24hrs
Meanwhile, an on-chain data platform, CryptoQuant affirms that the Bitcoin has stepped into early bull run and BTC is set to spike in the coming days. As per the data, there are 5 indicators that point towards the positive side of Bitcoin movement.
Bitcoin Indicators Pointing Bull Run
The first is there is an increased movement of Bitcoin among spot to derivatives exchanges which suggest that investors are taking risk now. Usually, investors opt to dump their BTC to derivatives to make maximum profits during market recovery.
Secondly, MVRV Ratio which flashes whether Bitcoin is undervalued or overvalued. The MVRV Ratio is obtained when Bitcoin’s market cap is divided by its actual market cap. At present, the currency’s MVRV is 1.07 and the indicator is crawling near the 365-day moving average pointing towards bull run.
Next is the Net Unrealized Profit/Loss through which Bitcoin holders average profit margin is known. Even this indicator is very much close to the 365-day moving average, meaning a bull run ahead.
Fourth indicator that is pointing towards the Bitcoin bull run is the Puell Multiple. This indicator displays the ratio between daily dollar worth of new BTC and 1 yr moving average. Currently, the indicator is above its 356-day moving average indicating bullish days ahead.
Lastly, CryptoQuant’s P&L Index indicator that also includes MVRV Ratio, Net Unrealized Profit/Loss and LTH/STH SOPR. This indicator is pointing towards early Bitcoin bull market and is a few figures away from surpassing the 365-day moving average.