Real Vision analyst Jamie Coutts said the stage is being set for a cryptocurrency bull market, with several indicators turning bullish.
Coutts says that almost all of the indicators that social media platform
“Over the past seven months, Bitcoin consolidation has significantly cooled valuation metrics that had overheated in the first quarter.
With the exception of open interest at an all-time high (100th percentile), almost all metrics – from MVRV (Market Value to Realized Value), Puell to LTH SOPR (Long Term Holder Consumed Output Profit Ratio) and Network Value to Addresses – are below the 50th percentile. has been reset to .
Much of the selling was driven by excessive leverage in the derivatives markets (mainly long positions), which has finally cleared up.
September saw a classic reload signal with the Puell Multiple temporarily reaching oversold and the network security reaching new highs.
Don’t forget that global liquidity is accelerating the upward trend.
“The stage is set.”
The Puell Multiple indicator, MVRV, LTH SOPR, and Network Value to Addresses are all on-chain indicators designed to measure the health of Bitcoin.
As of this writing, Bitcoin is trading at $69,173.
Coutts said that in addition to Bitcoin, Ethereum (ETH) rival Solana (SOL) is leading the smart contract platform (SCP) race and may be preparing for a breakout in the USD and BTC pair.
“This cycle, SOL led the major SCP L1 (Layer-1). Equity momentum factor strategies, such as applying a 12-month filter, interestingly tend to work well in cryptocurrencies despite their much higher volatility.
The SOL/BTC ratio is something to watch (bottom). “It hasn’t exploded yet.”
As of this writing, Solana is trading at $165.
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