The Bitcoin Cycle Index (BCI) is a composite on-chain cycle indicator that blends four independent dimensions of Bitcoin market health into a single reading: valuation stress, profit distribution across the supply, network activity, and market maturity. Rather than weighting these inputs equally and holding those weights fixed, the index applies adaptive weighting, letting the contribution of each dimension shift as conditions change so the composite stays sensitive across different phases of a Bitcoin cycle.
Read the index as a synthesis rather than any single metric. Because it fuses valuation with profit distribution, on-chain activity, and market maturity, a high reading means multiple dimensions are simultaneously stretched, which historically clusters around cycle tops, while a depressed reading means those same dimensions are washed out together, the condition that tends to accompany cycle bottoms. Divergences, where one dimension pulls the composite while others stay neutral, are worth noting as early rather than confirmed signals.
Use the Bitcoin Cycle Index as a regime gauge for locating where Bitcoin sits within its broader market cycle, favoring accumulation when the composite is depressed and treating sustained elevated readings as a signal that late-cycle valuation and profit-taking risk is building.
Check the selected asset, units, and cohort before comparing readings. Compare the metric over consistent dates and use related measures to understand what contributes to a change.
