Bitcoin Declines 30% From Peak as Bear Market Indicators Emerge

Key Points on Bitcoin's Market Dynamics:

Bitcoin is currently trading between $87,700 and $88,000, down 30% from its all-time high in October 2025.
On-chain data suggests a shift towards early-stage bear market conditions, as indicated by Bitcoin’s Combined Market Index (BCMI).
The BCMI, a composite indicator of price behavior and on-chain momentum, has dropped below the equilibrium zone, suggesting increased downside risks.
Historical analysis shows that significant cycle bottoms in past years formed when the BCMI compressed to the 0.25 to 0.35 range. The current reading is less than 0.4.
Market sentiment, measured by the Crypto Fear and Greed Index, stands at 28, indicating prevalent fear among traders.
Industry commentary highlights investor regret for not buying during previous lows, reflecting current cautious sentiment.

Bitcoin

These indicators suggest a potential transition into a bear phase rather than a mere pullback. Analysts believe a durable bottom may form if BCMI revisits historical levels seen in earlier cycles.