CryptoQuant: The market is undergoing a structural reset rather than a simple correction.

According to CryptoQuant analysts, the Bitcoin On-Chain Index (BCMI) continues to decline and is currently below equilibrium, but still above historical lows. This suggests that the market is not merely experiencing a cooling phase, but rather undergoing a structural reset through price and on-chain momentum. Historically, the cyclical bottoms of 2019 and 2023 formed when the BCMI reached the 0.25-0.35 range. From a data perspective, the current market may be transitioning to a bear market phase, rather than a simple correction. If past patterns repeat themselves, a more sustainable bottom is only likely to form when the BCMI falls back to the levels of 2019-2023. Currently, the market appears to be in a downward transition phase, rather than having completed its reset.