Bitcoin's Combined Market Index Signals Bearish Shift
A new CryptoQuant report analyzing Bitcoin's Combined Market Index has found that it is mirroring the early bear market conditions seen in 2018 and 2022. The index, which aggregates various valuation metrics, profitability indicators, and sentiment measures, has fallen into the low 0.2 range after sitting near the 0.5 equilibrium level as recently as October.
The report notes that this pattern diverges from past mid-cycle cooling periods and increasingly mirrors transitions into risk-off environments. Historical data shows previous cycle bottoms formed when BCMI reached approximately 0.10-0.15, but current readings remain above those levels, suggesting that full capitulation has not yet arrived.
The report also highlights that the $60,000, $62,000 zone now stands as a critical support area for Bitcoin, aligning with prior consolidation phases and high-liquidity trading zones that historically attracted demand.