Bitcoin Enters Full Bull Market on On-Chain Indicators

Bitcoin's price action has been closely watched by investors and analysts alike, and recent on-chain indicators suggest that the cryptocurrency has entered a full bull market. According to CryptoQuant analyst Axel Adler Jr., this is based on the ratio between the adjusted MVRV (30-day moving average) and the 365-day moving average crossing above its own 365-day moving average on Aug. 20, when Bitcoin was trading at $71,255.

The early bull phase lasted 31 days during which Bitcoin rose by 13%. However, it wasn't until Sept. 20 that the ratio broke above the 1.0 threshold, meaning the short-term MVRV average moved above the annual average, and Bitcoin entered a full bull market at $80,691.

Currently, the ratio stands at 1.018, with Bitcoin trading at $84,156. Adler notes that as long as this ratio remains above 1.0, the bullish structure is intact.

This argument is also based on historical performance, with this marking the sixth time since 2012 that Bitcoin has shifted from an early bull phase into a full bull market. In four of the previous five cases, prices finished above the level where the full bull market began.