On-chain metrics and sentiment indicators are being used to assess whether the current recovery signals a continuation of the bull cycle or if the market may be transitioning into a new phase<\/a>.<\/p>\n One such framework recently shared by CryptoQuant contributor Woominkyu offers<\/a> a broader view of Bitcoin\u2019s positioning using the Bitcoin Combined Market Index (BCMI).<\/p>\n According to Woominkyu, the BCMI provides a comprehensive overview of Bitcoin\u2019s market condition by aggregating four core metrics: MVRV (30%), NUPL (25%), SOPR (25%), and the Fear & Greed Index (20%).<\/p>\n Each component reflects key aspects of network valuation, investor sentiment, realized gains\/losses, and emotional market trends. The index assigns weightings to each metric and calculates a combined score, which can indicate whether the market is overheated or undervalued<\/a>.<\/p>\n Historically, a BCMI score below 0.15 is associated with extreme fear and potential buying opportunities, while scores above 0.75 often precede market tops or sharp corrections.<\/p>\n At present, the BCMI remains below the 0.5 level, suggesting that Bitcoin has not yet entered the overheated zone. Woominkyu suggests two possible scenarios<\/a>: the market is either undergoing a normal correction within an ongoing bull cycle, or it is showing early signs of an atypical transition into a bearish phase.<\/p>\n The moment of decision for Bitcoin<\/p>\n \u201cDuring this current market cycle, BCMI hasn\u2019t yet reached the typical \u2018overheated\u2019 zone (above 0.75). It\u2019s currently hovering below 0.5, suggesting we\u2019re at a crucial market juncture.\u201d \u2013 By @Woo_Minkyu<\/a><\/p>\n Read more \u2014 CryptoQuant.com (@cryptoquant_com) March 26, 2025<\/a><\/p>\n<\/blockquote>\n The analyst points to the importance of monitoring the 7-day and 90-day moving averages of the BCMI for clearer direction.<\/p>\n Should the index begin to trend upward, it may signal renewed momentum and a potential return to higher price levels. Conversely, a sustained decline could confirm a broader trend reversal<\/a>. Meanwhile, IntoTheBlock has recently shared<\/a> resistance zones of BTC identified onchain.<\/p>\n The market intelligence platform particularly emphasizes the $97.400 level noting that this is \u201cwhere roughly 1.44 million BTC are currently holding at a loss,\u201d therefore should BTC price hit that point we could see a pullback<\/a>.<\/p>\n Is Bitcoin on its way to test its highs?<\/p>\n The red bubbles in this chart highlight levels where underwater investors could sell as they break even, especially if uncertainty persists.<\/p>\n A key zone is around $97.4k, where roughly 1.44 million BTC are currently holding at a loss. pic.twitter.com\/LKaDBen7cU<\/a><\/p>\nAssessing Market Health Through BCMI Metrics<\/h2>\n
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https:\/\/t.co\/sfyunRuWbh<\/a> pic.twitter.com\/he77VS98t7<\/a><\/p>\nKey Thresholds to Watch in Bitcoin<\/h2>\n
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