This document proposes a multi-level block truncation code algorithm for RGB image compression to achieve low bit rates and high quality. The algorithm combines bit mapping and quantization by dividing images into blocks, calculating thresholds, quantizing thresholds, and representing blocks with bit maps. It was tested on standard images like flowers, Lena, and baboon. Results showed improved peak signal-to-noise ratio and mean squared error compared to existing methods, demonstrating the effectiveness of the proposed multi-level block truncation code algorithm for image compression.