The price of Bitcoin has shown signs of determination and fatigue in recent days, with mostly lateral movement and a couple of unused breaks over $ 105,000. This lack of speed comes when the crypto market continues to fight with the influence of the ongoing turmoil in the Middle East.
While the current choppiness in the Bitcoin price action suggests that Cryptocurrency Haussearted Momentum Is at that time insufficient for a break, recently occurring data on the chain not only confirms this conclusion but also provides insights into the potential next stop for the Cryptocurrency flagship.
Advanced sentiment index slides below 50%
In a 14 June post on the X platform, on the chain Analyst Axel Adler Jr. reported That Bitcoin’s Bullish sentiment among investors can start to lose intensity. This observation on the chain is based on Bitcoin Advanced Sentiment Index Metric, which measures the balance between Hausse and Baisse with positioning in the market to measure overall nutritional.
As the name suggests, this indicator of the chain provides insight into the general feeling in a particular cryptocurrency market. For example, a reading over 60-70% usually signals a strong raisserted feeling on the market and is usually seen before or during pricing.
While when the value of the meters is about 50%, it usually indicates neutral marketing term, which means that there is a level of determination or balance between bears and bulls. This is usually recorded in a consolidation phase, which precedes definitive directional movement on the market.
At the other end of the spectrum, when Bitcoin Advanced Sentiment Index reads below 40-50%, it means growing fear or caution on the market, which can precede further loss in BTC’s value. However, it can also potentially indicate a bottom if the feeling should be too pessimistic.
Source: @AxelAdlerJr on X
In the post at X, Adler reported Jr. A decline in the sentiment index below the neutral 50% threshold to about 46%, which falls within the baisse -like territory. According to the analyst, Bitcoin’s sentiment index topped over 80% early in June but slowly began to decrease after meeting the high.
Since BTC recently gathered at $ 105,000 from $ 103,000, other important measurement values such as the open interest indicated very little investors’ support, which further showed a weak hike presence.
What is the next for Bitcoin Price?
Adler Jr. meant that the indecision that is currently observed on the market can continue until something important – like the sentiment index – changes. For trend to resumeThe analyst explained that the index must recover over 60-65%, which would only occur if there are simultaneous increases in net torque volume and open interest.
If this does not happen, the Bitcoin price risks testing the next support level, about $ 102,000 – $ 103,000. For this reason, caution is cautious when acting on the market decisive, as the next support’s strength is still very likely.
From this writing, bitcoin is valued at $ 105 419, which reflects no significant price movement over the past 24 hours.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
Image from iStock, chart from tradingview
Editorial process For Bitcoinist is centered on delivering thoroughly investigated, correct and impartial content. We maintain strict purchasing standards, and each page undergoes frequent review of our team of top technological experts and experienced editors. This process ensures integrity, relevance and value of our content for our readers.
