Since the price of bitcoin has gained more than $5,000 since the beginning of the year and regained the psychologically important level of $20,000, the number of analysts predicting growth continues to grow.
CryptoQuant, one of the latest in a series of analytics firms, has unveiled its own take on the key network signals that will signal the start of a massive BTC bull run.
After Santiment reported that the supply of bitcoins on centralized exchanges fell to a multi-year low, CryptoQuant called this circumstance the first positive sign for bitcoin.
Analysts believe that the transfer of assets from spot platforms to derivatives platforms shows that traders have moved into "risk" mode, suggesting the start of a new bull cycle.
In addition, the MVRV ratio, which shows whether the price of BTC is undervalued or overvalued by comparing the actual market capitalization with the asset's market price, is close to its 365-day moving average (orange line). This suggests that Bitcoin is about to start a new uptrend.
The net unrealized profit/loss (NUPL) is also close to the 365-day MA, suggesting the same as MVRV.