Crypto Analytics Company CryptoQuant Announces the Crypto Market is Undergoing a Reset! Here Are the Details
Crypto analytics company CryptoQuant stated that the market is undergoing a “structural readjustment” rather than a simple correction.
According to an assessment dated December 24th, analysts noted that the BCMI (Bitcoin Cycle Momentum Indicator) index, one of Bitcoin’s on-chain indicators, has been steadily declining. The index is currently below its equilibrium level, but remains above its historical lows.
According to CryptoQuant, this outlook suggests the market isn’t just experiencing a temporary cooling-off, but is undergoing a deeper structural reset through price movements and on-chain momentum. Historical data points out that the cycle lows in 2019 and 2023 occurred when the BCMI fell to the 0.25–0.35 range.
Current levels being above these bands indicates that a lasting bottom has not yet formed in the market. Analysts therefore emphasize that the current movement is not simply a pullback, but potentially a transition towards a bear market. If the pattern seen in past cycles repeats itself, a stronger and longer-term bottom formation is only possible when the BCMI approaches the lows of previous periods.
CryptoQuant noted that the market is still in a downward transition phase and it is too early to say that the structural readjustment is complete. This suggests that investors should be cautious about short-term fluctuations and closely monitor on-chain data.
According to experts, the current outlook for Bitcoin presents both risks and potential long-term opportunities, but clearer signals from on-chain indicators are expected to clarify the market’s direction.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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