Bitcoin is at a Critical Crossroads: Two Scenarios Shared for Price
According to the latest data, the world's largest cryptocurrency may be at a critical turning point in terms of price. Here are the details.
Bitcoin is currently at a critical point, according to a recent analysis by CryptoQuant. The firm assessed the state of the BTC market using the Bitcoin Composite Market Index (BCMI), which combines key on-chain and sentiment metrics.
BCMI offers a structured assessment of Bitcoin market health by integrating four main indicators with the following weights:
Market Value – Realized Value (MVRV): 30% (Range: 0.5 – 4.0)
Net Unrealized Profit/Loss (NUPL): 25% (Range: -0.2 – 0.75)
Output Return on Investment Ratio (SOPR): 25% (Range: 0.8 – 1.3)
Fear and Greed Index: 20% (Range: 10 – 100)
Below 0.15: This indicates extreme market fear and often indicates an oversold market, historically presenting major buying opportunities.
Above 0.75: This level signals extreme greed and overbought conditions that often precede market corrections or tops.