Bitcoin Price Dips: Bearish Sentiment & Future Market Caution
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Bitcoin's price has fallen below a key support level, breaking out of a two-week consolidation range between $115,724 and $122,077, reaching a new low near $114,000. This drop signals a shift in short-term momentum, putting upward pressure on the defensive. The immediate resistance level is now at $117,000, a crucial point for a potential price reversal. The decline coincides with a bearish shift in market sentiment. Data from CryptoQuant shows futures sentiment dropping sharply, although it has slightly rebounded to 48%, still below the neutral 50% mark, indicating bearish dominance. This adds to the already fragile technical structure, suggesting traders anticipate further price drops. The Bitcoin Advanced Sentiment Index, a key metric for gauging investor mood and futures market positioning, also reflects this bearish sentiment, recently reaching a low of 40% before recovering to 48%. Analyst Axel Adler highlights that as long as this index remains below 50%, the market lacks confidence to maintain upward momentum, and traders will remain defensive. If the downward trend continues, Bitcoin could test the $112,000 level, a previous all-time high set in May. This level could act as support, but failure to hold it would trigger a deeper correction. The 12-hour chart shows increasing volume during the breakdown, strengthening the bearish signal. Bitcoin is currently trading below the 50-day SMA, further confirming short-term weakness. While long-term support levels remain intact, suggesting the main bull trend is still in place, the immediate momentum has shifted, and bulls need to quickly reclaim the $117,000 area to negate this breakdown. The coming days will be critical for determining if this is a temporary correction or the beginning of a larger trend reversal.
