Bitcoin Holds Above $85,000 as Market Index Signals Key Insights
Bitcoin has reclaimed the $85,000 mark, showing a weekly gain of approximately 4.7%. This increase indicates a possible shift in market momentum after previous sideways activity.
Key points include:
- Emerging indicators suggest Bitcoin's next major move may be determined by on-chain metrics and investor sentiment.
- The Bitcoin Combined Market Index (BCMI) aggregates four metrics: MVRV, NUPL, SOPR, and Fear & Greed Index to assess market health.
- Current BCMI score remains below 0.5, indicating Bitcoin is not in an overheated zone.
- Two potential scenarios are identified: a normal correction within a bull cycle or early signs of a bearish transition.
- Monitoring the 7-day and 90-day moving averages of the BCMI is crucial for future price direction.
- Resistance at $97,400 noted, where approximately 1.44 million BTC are holding at a loss, which could trigger selling pressure if reached.
