Bitcoin Price Shows Strength as BCMI Signals Early Accumulation Phase

Bitcoin is currently priced at $106,235.27, down 1.40%. The Bitcoin Combined Market Index (BCMI) indicates a potential early accumulation phase, as it rebounds amid improving sentiment and decreased profit-taking. This composite indicator uses various metrics to evaluate market sentiment and cycle stages. Investors should note current BCMI readings suggest a stable market, possibly setting the stage for strategic investments. In the past week, Bitcoin has seen a decline of 1.9%, but recently reached a new high of $111,980, lingering slightly below that peak.

As of now, Bitcoin is trading at $106,235.27, experiencing a slight decrease of 1.40%. Interestingly, the Bitcoin Combined Market Index (BCMI) has shown signs of rebounding, hinting at a potential accumulation phase. Market sentiment appears to be improving, with less profit-taking and robust on-chain indicators, giving rise to hopes of positive momentum in Bitcoin’s price soon.

Woominkyu, a respected crypto analyst, has recently updated his findings, noting a significant rebound in BCMI. This rebound could mean the Bitcoin market is transitioning into an accumulation phase—a situation that savvy investors might exploit. There’s a growing optimism, bolstered by a reduction in profit-taking, which indicates a possible upside for Bitcoin in the near future.

So, what exactly is BCMI? The Bitcoin Combined Market Index, created by Woominkyu, combines several on-chain metrics—namely Market Value to Realised Value (MVRV), Net Unrealised Profit/Loss (NUPL), Spent Output Profit Ratio (SOPR), and the Fear & Greed Index—to gauge the overall market sentiment and the current cycle phase for Bitcoin. Essentially, MVRV compares Bitcoin’s current market price with the average price paid for all coins, while NUPL reflects the total profit or loss held by Bitcoin investors.

The SOPR examines whether the coins being transacted are at a profit or a loss, while the Fear & Greed Index serves to illustrate the emotions driving investor sentiment. When BCMI falls below 0.15, it indicates extreme fear in the market, often aligning with low prices and negative sentiment. Conversely, readings above 0.75 point to market euphoria, typically observed when prices peak during cycles.

Looking at the current BCMI status, Woominkyu highlights that the 7-day Simple Moving Average (SMA) of BCMI is at 0.6, with the 90-day SMA at 0.45. This uptick in the short-term average following recent market corrections is a positive sign, suggesting increased investor confidence swayed by higher transaction volumes and robust on-chain fundamentals. Meanwhile, the long-term stability indicates the market isn’t heating up excessively.

The improving sentiment among investors also corresponds to a drop in exchange outflows and a rise in long-term holder acquisition—both crucial for establishing a solid accumulation phase. With the recent decline in the Spent Output Profit Ratio, profit-taking appears to be less frequent, which could be an excellent opportunity for strategic buying at relatively lower prices.

In the past week, Bitcoin’s market recorded a decline of 1.9%, with a further dip of 0.3% in just the last day. It’s noteworthy that Bitcoin recently achieved a record price of $111,980, surpassing its previous all-time high of $108,786 from January 2025. However, it’s currently trading at approximately $108,492.71, which is around 3.11% less than that all-time high recorded on May 22, 2025.

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