Analyst: BCMI index breaks through the 0.50 neutral line, crypto market enters "warming period"

ChainCatcher news, CryptoQuant analysts stated that the BCMI index has recently broken through the 0.50 neutral line, indicating that the Bitcoin market is in the "mid-cycle, warming up" phase. The Fear and Greed Index is in the greedy range of over 70, while the MVRV (~2.0) and NUPL (~0.4) indicators suggest that the market valuation has only reached half of the euphoric level.

Historical patterns show that when the BCMI index enters the 0.60-0.75 range, a 20-35% pullback usually occurs before the cycle peak. Although ETF inflows and self-custody behavior are easing on-chain volatility, the crowded state of the derivatives market may still trigger a sudden pullback.

Analysts suggest: spot investors should gradually build positions and set trailing stop losses; holders should maintain core positions and start hedging or reducing leverage when the BCMI exceeds 0.60; lock in profits and reduce risk when the index surpasses 0.75.