The price of Bitcoins has shown signs of indecision and exhaustion in the last few days, mostly side movement and several unparalleled breaks above USD 105,000. This lack of momentum comes when the cryptocurrency market is still struggling with the influence of constant unrest in the Middle East.
While the current dot of the Bitcoin price price suggests that the stubborn cryptocurrency shoot is not sufficient at that time, the latest data for the chain not only confirms this conclusion, but also offers insight into the potential next stop for the flagship cryptocurrency.
The advanced sentiment index slides under 50%
In the post on June 14 on platform X AXEL AXEL ADLER JR. Reported This stubborn Bitcoin mood among investors can start losing intensity. This observation in the chain is based on the record of the Bitcoin advanced sentiments index, which measures the balance between the positioning of stubborn and bears on the market to assess the general mood of traders.
As the name suggests, this chain indicator offers insight into a general sentiment on a specific cryptocurrency market. For example, reading above 60-70% usually signals a powerful stubborn fondness on the market and is usually evident before or during price rallies.
Meanwhile, when the value of the metric It is about 50%, usually indicates neutral market moods, which means that there is a level of indecision or balance between bears and bulls. This is usually recorded in the consolidation phase, which precedes the final directional traffic on the market.
At the other end of the spectrum, when the Bitcoin advanced mood index reads below 40-50%, implies growing fear or caution on the market, which can precede the further loss of BTC value. However, this may potentially indicate the bottom if the mood was too bleak.
Source: @AxelAdlerJr on X
In the post on X Adler Jr. reported a decrease in the sentiment indicator below the 50% neutral threshold to about 46%, which is located on the territory of the bear. According to the analyst, the Bitcoin mood indicator reached the highest level above 80% at the beginning of June, but slowly began to fall after reaching the height.
Since BTC has recently increased to USD 105,000 from USD 103,000, other vital indicators, such as open interest, also pointed to very little investors’ support, additionally showing the penniless presence of the stubborn.
What next in the Bitcoins price?
Adler Jr. He stated that the indecision of currently observed on the market could persist until something vital – such as an index of sentiments – will not change. To resume, the analyst explained that the indicator must reflect above 60-65%, which would only occur if there is a simultaneous raise in net volume and open interest.
If this does not happen, the risk of Bitcoins price testing the next level of support, about USD 102,000 – USD 103,000. For this reason, caution in the field of market trade is necessary because the strength of subsequent support is still highly probabilistic.
In this letter, Bitcoin is valued at USD 105,419, which reflects any significant price movement in the last 24 hours.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
Recommended photo from Istock, chart from TradingView
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