Analyst: BCMI Index Surpasses 0.50 Neutral Line, Crypto Market Enters "Heating Up Phase"

According to ChainCatcher, a CryptoQuant analyst stated that the BCMI index has recently broken through the 0.50 neutral line, indicating that the Bitcoin market is currently in the "mid-cycle, heating up" phase. The Fear and Greed Index is in the greedy range above 70, while the MVRV (~2.0) and NUPL (~0.4) indicators suggest that market valuation has only reached half of the frenzy level.

Historical patterns show that when the BCMI index enters the 0.60-0.75 range, a 20-35% pullback typically occurs before the cycle peak. Although continued ETF inflows and self-custody are helping to moderate on-chain volatility, the crowded state of the derivatives market could still trigger a sudden correction.

The analyst recommends that spot investors gradually build positions and set trailing stop-losses; holders should retain core positions and begin hedging or reducing leverage when BCMI exceeds 0.60; and when the index surpasses 0.75, lock in profits and reduce risk.