Real Vision analyst Jamie Coutts believes that the cryptocurrency market is gearing up for a bull run, with multiple indicators pointing towards a positive trend.
On the social media platform X, Coutts shares that most of the metrics he uses to assess the health of the Bitcoin market cycle are no longer in “overheated” territory, signaling good news for BTC.
“Bitcoin’s consolidation over the past seven months has significantly cooled down valuation metrics that were overheated in Q1.
With the exception of Open Interest at an all-time high, nearly all metrics – from MVRV and Puell to LTH SOPR and Network Value to Addresses – have reset below the 50th percentile.
The recent sell-off was driven by excessive leverage in the derivatives market, mainly on the long side, but that pressure has now eased.
In September, we observed a classic reload signal with the Puell Multiple briefly dipping into oversold territory, while network security reached new highs.
It’s important to note that global liquidity is on the rise.
The stage is set.”
The Puell Multiple indicator, MVRV, LTH SOPR, and Network Value to Addresses are all on-chain metrics designed to assess the health of Bitcoin.
Currently, Bitcoin is trading at $69,173.
Looking beyond Bitcoin, Coutts highlights that Ethereum (ETH) competitor Solana (SOL) is leading the smart contract platform race and could be on the verge of a breakout in its USD and BTC pairs.
“This cycle, SOL has been at the forefront among major SCP L1s. Equity momentum factor strategies, such as implementing a 12-month filter, tend to perform well in crypto despite higher volatility levels.
The SOL/BTC ratio is a key indicator to monitor. It has not broken out yet.”
Currently, Solana is trading at $165.
Don’t Miss a Beat – Subscribe to receive email alerts directly to your inbox.
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Generated Image: Midjourney
