Bitcoin Enters Bear Market, Supported by Key Data

As Bitcoin's price trend suggests a shift into a bear market, industry experts are increasingly referencing critical on-chain data. Currently trading between $87,700 and $88,000, Bitcoin has experienced a decline of approximately 30% since its all-time high in October 2025. While price movements often prompt speculation, on-chain insights are beginning to reveal a clearer picture. Analysis from CryptoQuant identifies a notable shift in Bitcoin's market structure, which corresponds with bear market indicators. A critical aspect to consider is Bitcoin’s Combined Market Index (BCMI), an essential metric that combines price dynamics with on-chain activity. According to verified analyst Woo Minkyu, Bitcoin's BCMI dropped to 0.5 in October, initially signaling a cooling period rather than a peak. However, recent market conditions have led to a significant decline in Bitcoin's price and BCMI, suggesting a broader reset across valuation and participation metrics. Presently, the BCMI is below equilibrium, a transition often associated with bearish cycles marked by capped rallies and heightened risk of downside. Historical data indicates that substantial market bottoms typically occur when the BCMI compresses between 0.25 and 0.35. Currently, the BCMI is under 0.4, indicating a possible move into a bear phase rather than a temporary pullback. Analysts suggest a more stable market bottom may only develop if the BCMI revisits historical lows. Supporting this bearish outlook is a notable lack of market optimism. Currently, the Crypto Fear and Greed Index shows a reading of 28, placing sentiment firmly in the 'Fear' zone. Commentary from industry leaders reinforces this sentiment, with observations that current conditions resemble those preceding earlier price accumulations during times of fear, uncertainty, and doubt.