CryptoQuant Analyst: Bitcoin is entering a "Value Accrual Zone," with limited downside

BlockBeats News, April 17th, according to CryptoQuant data, the Bitcoin Composite Market Index (BCMI), which consists of MVRV, NUPL, SOPR, and the Fear & Greed Index, is currently testing a key historical pivot zone.

Analyst Woominkyu (@Woo_Minkyu) stated that the BCMI index has dropped to the 0.2 to 0.3 range. While not guaranteeing an immediate "V-shaped" reversal, this range historically corresponds to BTC's deep undervaluation levels. Through data analysis, the BCMI confirms that the current pullback has reset the realized value and market sentiment to levels not seen since early 2023, but the 90-day moving average (white line) is still trending downward. From a conservative perspective, it is necessary to wait for this slope to flatten out, which will be a signal that the selling pressure has finally been exhausted.

Furthermore, analyst Woominkyu believes that the market is entering a "value accumulation zone," where the downside potential is shrinking compared to the long-term upside potential. However, it is still necessary to wait for price stability to confirm a bottom signal for the index.