The price of Bitcoin has shown signs of hesitation and exhaustion over the past few days, mainly with sideways moving, with several unfixed breaks of more than $105,000. This momentum is lacking as crypto markets continue to struggle to cope with the impact of ongoing Middle East turmoil.
While the current chopping nature of Bitcoin price action suggests that the bullish momentum of cryptocurrencies was not enough to rest at that time, recent on-chain data not only confirms this inference, but also provides insight into the potential next stop for flagship cryptocurrencies.
Advanced Emotional Index Slides Below 50%
In an article on X platform on June 14, Chain Chain analyst Axel Adler Jr. reported that bullish sentiment among investors may begin to lose its intensity. The chain observation is based on Bitcoin’s Advanced Sentiment Index metrics, which measures the balance between bullish and bearish positions in the market to measure overall trader sentiment.
As the name suggests, this chain chain metric provides insight into the widespread sentiment in a particular cryptocurrency market. For example, more than 60-70% of readings usually appear on the market or before or during a price gathering.
At the same time, when the value of the indicator About 50%, usually indicates neutral market sentiment, which means there is a level of hesitation or balance between bears and bulls. This is usually recorded in the integration phase, which is before moving in the direction determined in the market.
On the other side, when Bitcoin’s Advanced Sentiment Index reads below 40-50%, it means fear or caution in the market, which could be a further loss of BTC’s value. However, if the mood is too pessimistic, it may also indicate the bottom.
Source: @AxelAdlerJr on X
In the post on X, Adler Jr., according to analysts, Bitcoin’s sentiment index peaked above 80% in early June, but began to slowly decline after reaching its highs.
As BTC recently rose from $103,000 to $105,000 from $103,000, other important indicators such as open interest also indicate little support from investors, further indicating bullish business weakness.
What is the next step in Bitcoin price?
Adler Jr. believes that the indecision currently observed in the market may continue until something important, such as the emotional index, changes. To resume the uptrend, analysts explained that the index must rebound more than 60-65%, which will only happen if both increase the number of net income and open interest.
If it doesn’t happen, the Bitcoin price risk tests the next support level, about $102,000-$103,000. Therefore, caution in market trading is essential, because the next support force is still highly probabilistic.
As of this writing, Bitcoin is worth $105,419, reflecting no significant price changes in the past 24 hours.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured images from Istock, charts for TradingView
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