Key Indicators Turn Bullish, Bitcoin Poised for a Market Upsurge

Real Vision's Jamie Coutts suggests the crypto market could be entering a bullish phase, supported by favorable indicators across Bitcoin’s metrics.

Coutts shared that nearly all Bitcoin market health metrics he tracks are now out of their “overheated” range, a strong signal for potential BTC growth. He noted that Bitcoin’s consolidation over the past seven months has eased its valuation metrics, which were overheated in early 2024.

Currently, most indicators, including MVRV (market value to realized value), the Puell Multiple, and LTH SOPR (long-term holder spent output profit ratio), have dipped below the halfway mark, indicating a cooling-off period.

Coutts attributes much of the recent price pullback to an overleveraged derivatives market, particularly on the long side, which has now largely stabilized. September saw a signal from the Puell Multiple briefly entering oversold territory, while Bitcoin’s network security strengthened to new levels.

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Coutts also pointed out that global liquidity is trending upward, potentially fueling a favorable environment for crypto growth.

The Puell Multiple, MVRV, LTH SOPR, and Network Value to Addresses are on-chain tools that offer insights into Bitcoin’s market cycle and overall health.4

This cycle, $SOL has led the major SCP L1s. Equity momentum factor strategies, like deploying a 12-month filter, also interestingly tend to work well in #crypto despite magnitudes higher volatility.

The SOL/BTC ratio is the one to watch (bottom). Hasnt broken out, yet. pic.twitter.com/Gfnac5W2Az

— Jamie Coutts CMT (@Jamie1Coutts) October 29, 2024

Shifting his focus to Ethereum competitor Solana (SOL), Coutts remarked that SOL is showing strong performance among smart contract platforms (SCPs) this cycle and could be close to a breakout against both USD and BTC pairs. He added that long-term momentum strategies, like a 12-month filter, can be effective in tracking crypto assets despite their volatility. According to Coutts, the SOL/BTC pair is a key indicator to monitor, as it has yet to confirm an upward breakout.

Alexander Zdravkov