Bitcoin Sentiment Nosedives: Can the $102K Floor Withstand the Bearish Onslaught?

Bitcoin''s bullish chorus just hit a sour note—sentiment''s plunged into bear territory as traders eye that critical $102K support level. Will it hold or fold?

The crypto king''s facing its first real stress test since the 2024 halving frenzy. Market veterans are split: some see this as healthy consolidation, others spy the start of a proper correction.

Meanwhile, Wall Street''s ''experts'' are suddenly rediscovering technical analysis—funny how charts matter when your leveraged long gets liquidated.

Bitcoin sentiment weakens below neutral

The Advanced Sentiment Index dropped to 46.1%, slipping under the neutral zone after peaking above 80% last week.

Source: CryptoQuant

The drop happened despite bitcoin recovering to $106K, largely because Open Interest and Net Buy Volume failed to sustain the rally. In fact, Open Interest fell sharply from $37.8B to $33.7B—an exit of $4.1B in capital.

Naturally, such a drop indicated traders were closing positions to reduce risk. With liquidity thinning, the market showed signs of growing bearish sentiment.

Source: CryptoQuant

At the same time, as OI declined, Net Buy Volume also dipped, with the Volume Delta remaining close to zero. So, capital inflow had reduced, with investors taking a step back in the market. 

Also, Bitcoin’s OBV remained negative below 100k, signaling a lack of bullish volume support, rising risk for a pullback. This is because sellers are active in the market and continue to exit the market. 

This behavior is more prevalent among Bitcoin Long-Term Holders, especially as LTH SOPR has surged significantly, hitting a monthly high.

The group’s selling over the past two days has weighed on price stability.

Source: CryptoQuant

What’s next for BTC if volumes stay low?

Bitcoin is hovering around $102k and $105k after the recent price pullback, as the market lacks significant volume.

For BTC to MOVE above this range, the market needs a surge in volume where OBV moves above -80k. 

At the same time, Bitcoin’s Advanced Sentiment Index WOULD need to climb past 65% to confirm renewed momentum. That shift must also reflect in stronger Net Taker Volume and rising Open Interest.

Until then, sellers are likely to remain in control. If volume stays muted, BTC could retest the $102K support, or even slide to $101,500.