Bitcoin Sentiment Index Flashes Bullish Signal – Bears Retreat as Market Momentum Shifts

Bitcoin’s Advanced Sentiment Index just triggered its strongest buy signal since the 2024 halving—and the bears are running out of excuses. Retail FOMO meets institutional accumulation as open interest spikes.

Key indicators turning green:

- Funding rates stabilize after March’s volatility crush

- Spot volumes outpace derivatives for first time in Q2

- Miner capitulation ends as hash rate recovers

Wall Street analysts scramble to upgrade price targets (though let’s be honest—their track record with crypto predictions is worse than a blindfolded dart thrower). The real story? This rally’s being driven by actual adoption, not just leverage. For once.

Bitcoin Faces Turning Point As Bulls Gain Short-Term Control

Bitcoin is entering a pivotal moment that could shape the next phase of the market. After reclaiming key resistance levels and pushing above $90K, bulls are now in control of short-term price action. The question is whether this momentum can be sustained, or if a deeper correction still lies ahead.

Global instability, especially the ongoing trade tensions between the US and China, continues to cloud the outlook. Supply chain risks, uncertain monetary policy, and geopolitical pressures are keeping markets on edge. While crypto has often been seen as a hedge against such macroeconomic stress, it remains vulnerable to shifts in global sentiment.

Despite the risks, some analysts are confident. Top analyst Axel Adler stated on X: “I don’t think bears in the futures market have any chance.” Referencing the overwhelming bullish positioning in derivatives markets. Futures open interest and funding rates are both rising, indicating growing confidence among traders.

However, this kind of surge must be supported by spot market demand to sustain the rally. If buyers are concentrated only in Leveraged markets, the price may lack the real backing needed for a long-term breakout. Without steady spot accumulation, selling pressure could eventually overtake momentum.

BTC Price Pushes Forward, But Key Resistance Looms

Bitcoin is trading at $94,200 after a brief dip to $91,000 earlier today, showing resilience as bulls continue to dominate short-term momentum. The bounce from the lower levels reinforces the idea that buyers are stepping in quickly to defend key support zones. However, the real challenge lies just ahead.

To confirm the sustainability of this recovery rally, BTC must decisively reclaim the $95,000–$96,000 range. This zone remains a critical resistance area, and a breakout above it would likely trigger the next leg up toward $100,000. Still, analysts caution that this move might not happen immediately.

Instead, Bitcoin could enter a consolidation phase below $95,000 for several days or even weeks as the market absorbs recent gains. This would allow sentiment and structure to reset without invalidating the overall bullish trend. Holding above the $90K–$91K zone during any retests will be essential to maintain bullish confidence.

For now, bulls remain in control, but the next breakout needs strong volume and continued demand to avoid another rejection. Until then, traders should be prepared for choppy price action as BTC navigates this key resistance region.

Featured image from Dall-E, chart from TradingView