CryptoQuant Analyst: Bitcoin is entering the value accumulation zone, and there is limited room for decline

Comparatively, according to CryptoQuant data, the Bitcoin Composite Market Index (BCMI), which consists of MVRV, NUPL, SOPR, and the Fear and Greed Index, is currently testing key historical pivots.

Analyst Woominkyu (@Woo_Minkyu) said the BCMI index has fallen to the 0.2 to 0.3 range. While there is no guarantee of an immediate V-reversal, the region historically corresponds to a deeply undervalued level of BTC. Through data backtracking, BCMI confirmed that the current pullback has reset realized values and market sentiment to levels not seen since early 2023, but the 90-day EMA (white line) is still declining. From a conservative point of view, it is necessary to wait for this slope to flatten; this will be a sign that the selling pressure will eventually run out.

Furthermore, analyst Woominkyu believes that the market is entering a value accumulation zone, and the room for decline is shrinking compared to the long-term upside. However, it is still necessary to wait for the price to stabilize to confirm the bottom signal of the index.