Bitcoin’s price has been pretty flat lately, bouncing around without much upward momentum. It briefly poked above $105,000 a few times but couldn’t hold the gains. This lack of movement comes as the crypto world deals with the ongoing Middle East situation.
Investor Sentiment Turns Sour
On-chain data paints a picture of weakening bullish sentiment. Analyst Axel Adler Jr. noted that the Bitcoin Advanced Sentiment Index (BASI) has dipped below 50%, entering bearish territory (around 46%). This index measures the balance between bullish and bearish investors.
- Above 60-70%: Generally signals strong bullish sentiment and often precedes price rallies.
- Around 50%: Indicates neutral sentiment – a period of indecision.
- Below 40-50%: Suggests growing fear and potential further price drops, though it could also signal a bottom if pessimism is extreme.
The BASI was above 80% earlier in June but has been steadily falling. Other metrics, like open interest, also show weak investor support.
What’s Next for Bitcoin?
Adler believes the current uncertainty will continue until something significant changes, like the BASI. For Bitcoin’s price to climb again, the BASI needs to jump back above 60-65%. This would require a simultaneous increase in trading volume and open interest.
If this doesn’t happen, Bitcoin could test the next support level, around $102,000-$103,000. It’s important to be cautious, as the strength of this support level is uncertain.
At the time of writing, Bitcoin is trading at around $105,419, showing little change in the last 24 hours.
