The Bitcoin Combined Market Index (BCMI) has not yet reached the ‘typical overheating zone’ above 0.75, noted CryptoQuant contributor Woominkyu.
“Currently, the indicator remains below 0.5, indicating a critical moment for the market,” the researcher emphasized.
BCMI is based on the following metrics:
- MVRV (weight in the combined indicator — 30%);
- NUPL (25%);
- SOPR (25%);
- fear and greed index (20%).
Values below 0.15 indicate panic sentiment and overselling, suggesting good opportunities for long-term purchases; above 0.75 — prevailing market greed, which usually precedes cyclical peaks and corrections.
Woominkyu presented two potential scenarios:
- opportunities for investors before the resumption of growth (“we are likely witnessing a healthy, normal correction within an ongoing bull market”);
- premature start of a bear phase, contrary to historical patterns (“an atypical end to the bull phase”).
“Closely monitor clear directional signals from the 7- and 90-day moving averages of BCMI,” advised the expert.
Woominkyu’s colleague, known as nino, noted the rise in premiums on the Coinbase exchange, which may indicate “increased demand from American investors and strengthening confidence on a global level.”
Is the Coinbase Premium Signaling a Bullish Shift for Bitcoin?
“The Coinbase Premium Index appears to be trending toward positive territory… heightened demand from U.S. investors can bolster global market confidence.” – By @nino_trade
Full analysis ⤵️https://t.co/1sw0Qep5Hk pic.twitter.com/d2P6mzykLl
— CryptoQuant.com (@cryptoquant_com) March 26, 2025
She added that for a more complete picture, it is advisable to monitor other important indicators, such as trading volumes and various on-chain metrics.
Earlier, CryptoQuant head Ki Young Ju stated the end of the bitcoin bull market.