Now, the Bitcoin market has entered a downward spiral. one of the most pressing questions Crypto industry. Bitcoin trades right now between $87.700 to $88,000. That’s a 30 percent drop from its previous high in October 2025.
Only Price Action? often leaves room for debate, On-chain data has begun to provide clearer direction. CryptoQuant’s analysis shows how Bitcoin’s internal market structure has shifted in a direction that is more aligned with the early stages of a bear market.
BCMI Falls Below Equilibrium
Important bear market indicators from Bitcoin’s Combined Market IndexBCMI is an indicator which combines price behaviour with the on-chain movement. Woo Minkyu is a CryptoQuant verified analyst who claims that Bitcoin’s BCMI has returned to 0.5 in October. This was first interpreted by some as a cooling period rather than an end to the cycle. At that time, it was assumed that Bitcoin would consolidate after a prolonged rally.
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This view, however, has changed as the market’s conditions have deteriorated. The BCMI and Bitcoin have both fallen along with its price since the end of October. The BCMI has also fallen in tandem with the price.
The chart shows that the BCMI is now below the equilibrium zone. This is an event known to occur when a transition occurs into a bearish phase, in which rallies are capped and the downside risk increases.
The current Bitcoin cycle can be better understood by examining previous Bitcoin cycles. Both in 2019 and 2023 meaningful cycle bottoms were formed after BCMI was compressed to the range of 0.25- 0.35. These levels were a reflection of deep sentiment compression and washed out positioning. They also reflected a structural reset in the market.
Bitcoin’s Combined Market Index (CMI) is currently less than 0.4. Although this reading is still below equilibrium well above a bottom zone. It is possible that this market has entered a bearish phase and not simply experienced a correction.
Analysts believe that a bottom more stable may form only if the BCMI returns to its levels from 2019-2023.
The evidence of a bear market is bolstered by a weakening sentiment
Market sentiment is also supporting the idea Bitcoin has entered a more bearish phase. The optimism has really been scarce over the past few weeks. Traders have shown little faith that price has reached a stable floor. CoinMarketCap’s Crypto Fear and Greed Index is currently posting a reading The Fear factor is firmly established at 28, as this puts us in the Fear Zone.
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Commentary from the industry has confirmed this poor sentiment background. Changpeng Zhao is one example. recently noted that many investors Only wish they’d bought Bitcoin sooner when prices are already so high. In reality, these early investments were made during times of fear, doubt, and uncertainty.
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Source: www.newsbtc.com
