Cryptocurrency markets are notoriously unstable, but that doesn’t stop savvy traders from investing wisely and making a good return on their investments. While there’s no way to eliminate the threat of market crashes, smart investors know that there’s a right time and a wrong time to enter the market. Read on to find out about five crypto bull market indicators that every first-time crypto investor should watch for.

MVRV Ratio

MVRV stands for Market Cap/Realized Cap. The Market Value (MV) Cap is a standard metric of valuation that utilizes the last traded price and multiplies it by the coins currently in circulation, while the Realized Value (RV) Cap is an alternative approach to network valuation. RV approximates the value of all coins in existence by combining the market value of crypto coins the last time they moved on their blockchains.

The MVRV metric is useful for getting an idea of when exchange-traded prices are below fair value, and investors who are paying close attention can use it to spot market tops and bottoms. Investors will want to enter the market before the data points indicate that crypto prices are going to peak by visiting xCoins.io.

HODLer Resilience

The term HODLer refers to an investor who keeps cryptocurrency for a prolonged period instead of selling it. New investors can gain insight into the current state of the crypto market by paying attention to HODLer resilience, or how many long-term holders are selling their assets. They can get this insight by checking graphs of unspent transaction output (UTXO), which refers to the amount of cryptocurrency remaining after executing transactions.

Destruction Patterns

Destruction patterns change depending on when long-time holders move their assets. Destruction days tend to be flat in bull markets and spike in bear markets. Take a look at a graph of recent destruction patterns to identify the number of days with UTXO at loss. If there are few or none of them, it indicates that the bull market structure is likely to remain intact and hasn’t yet peaked.

Summer Cooling

If investors take a look at crypto performance since Bitcoin was introduced, it’s clear that summers in the Northern Hemisphere are somewhat of a mixed bag. Some reflect bear markets, while others, such as this summer, reflect bull market trends. An awareness of how summer cooling affects the crypto markets can make it easier to identify one from the other.

New Horizons

It has only recently become clear that cryptocurrency, as a whole, is here to stay. Lately, the crypto markets have seen a slew of new investors, from governments to traditional capitalists, and multiple crypto exchanges have gone public. The infrastructure in place to handle crypto transactions has also changed, with centralized exchanges, crypto-insurance, futures, and other solutions popping up to meet increasing demand.

Most crypto experts believe it’s now safe to assume that dips in the market value of cryptocurrencies are temporary. In the long run, they believe demand will continue to grow and fundamentals will keep gaining strength. These are clear indicators of strong long-term adaptation, so while there will always be ups and downs in the market, and some will increase volatility more than others, most long-term investors no longer consider cryptocurrency as an asset class to be extremely risky.

The Bottom Line

It takes a lot of work to develop a clear understanding of cryptocurrency market trends. New investors can get started by keeping track of the metrics described above to decide when to enter the market.