Bitcoin prices have shown signs of indecisiveness and fatigue over the past few days, with mainly sideways and two or three breaks of $105,000. This lack of momentum is as the crypto market continues to tackle the ongoing unrest in the Middle East.
The current choppiness of Bitcoin’s price action suggests that cryptocurrency bullish momentum is not enough for a break at the time, but recent chain data not only supports this reasoning, but also provides insight into the potential next stop for flagship cryptocurrency.
Advanced Sentiment Index Slips below 50%
In a June 14th post on the X Platform, on-chain analyst Axel Adler Jr. reported that Bitcoin’s bullish sentiment among investors may be beginning to lose intensity. This on-chain observation is based on Bitcoin’s advanced emotional index metrics, measuring the balance between bullish and bearish positions in the market, and measuring overall trader sentiment.
As its name suggests, this on-chain indicator provides insight into the general sentiment in a particular cryptocurrency market. For example, reads above 60-70% usually show strong bullish sentiment in the market, usually seen before price rise or before price.
On the other hand, if there is a metric value It is about 50%, and usually shows neutral market sentiment. This means there is indecisiveness or balance between the bear and the bull. This is usually recorded in the integration phase that precedes a critical market directional movement.
At the other end of the spectrum, if Bitcoin’s advanced sentiment index is read at less than 40-50%, it means increased fear and attention in the market that could precede further loss of BTC’s value. However, if the emotions are overly pessimistic, they can potentially be at a bottom.
Source: @AxelAdlerJr on XIn X’s post, Adler Jr. reported a drop in the emotional index below the neutral 50% threshold to about 46%. This is in bearish territory. According to analysts, Bitcoin’s sentiment index peaked at over 80% early in June, but after hitting highs it began to decline gradually.
As BTC has recently been promoted from $103,000 to $105,000, other key metrics such as open profits show little investor support, further demonstrating the existence of weak bullishness.
What’s next for Bitcoin price?
Adler Jr. said that indecisiveness currently observed in the market could last until something important, such as the emotional index, changes. For the uptrend to resume, analysts explained that the index should rebound beyond 60-65%.
If this doesn’t happen, the price of Bitcoin is at risk of testing the next level of support, which is around $102,000 – $103,000. Therefore, caution is essential when trading in the market as the strength of the following support remains very probabilistic.
At the time of writing, Bitcoin has been valued at $105,419, and does not reflect any significant price movements in the last 24 hours.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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