Bitcoin Sentiment Hits Extreme Bearish Zone—Futures Traders Brace for Impact

Fear grips crypto markets as Bitcoin's Advanced Sentiment Index plunges into bearish territory. Futures traders are hedging like it's 2018—because nothing teaches caution like a 70% drawdown.

Market psychology flashing red. The sentiment index—a favorite toy of quant funds and overleveraged degens—now signals maximum pessimism. Remember: when everyone's running for the exits, contrarians start stacking sats.

Futures open interest shrinks as traders duck for cover. No one wants to catch the falling knife—except those betting on the inevitable bounce. Classic case of weak hands vs. diamond hands.

Meanwhile, traditional finance bros nod sagely about 'risk management' while their bond portfolios yield less than a Celsius savings account. Crypto winter? More like selective harvest season for smart money.

Bitcoin Advanced Sentiment Index Signals Rising Bearish Pressure

Top analyst Axel Adler has shared new insights into the bitcoin Advanced Sentiment Index, a key metric used to gauge futures market positioning and broader investor mood. According to Adler, the index recently dropped to 40%—a sharp decline that reflected growing risk aversion and bearish positioning. Although the metric has since rebounded to 48%, it remains below the critical 50% threshold, which separates bullish from bearish territory.

This rebound signals a temporary pause in negative sentiment, but the broader trend shows a shift from bullish caution to bearish fear. Adler notes that as long as the index remains below 50%, the market lacks the confidence needed to sustain upward momentum. Traders are growing increasingly defensive, reducing long exposure and bracing for further downside.

If momentum continues to deteriorate, BTC could test the $112,000 level—the previous all-time high set in May. This zone may act as psychological and technical support, but failure to hold it could trigger a deeper correction.

With the Advanced Sentiment Index stuck in bearish territory and price action weakening, the market appears to be entering a riskier phase. While this doesn’t yet signal a full trend reversal, it does reflect growing uncertainty. Until sentiment and price reclaim higher ground, caution is warranted. The next MOVE will likely depend on whether bulls can defend $112K—or if bears gain full control of the trend.

BTC Loses Key Support After Breakdown

Bitcoin has officially broken down from its two-week consolidation range, losing the critical $115,724 support level highlighted in the chart. The price reached a new local low at $114,116 before recovering slightly to the $115,100 zone, where it’s currently attempting to find footing. This marks a significant shift in momentum, as bulls failed to defend the lower boundary of the range, which held firm throughout July.

The 12-hour chart shows rising volume accompanying this breakdown, adding weight to the bearish move. BTC now trades below the 50-day SMA ($116,981), confirming weakness in short-term structure. The next major support sits around $112,000—the prior all-time high set in May—which could act as a psychological and technical floor.

The 100-day and 200-day SMAs remain well below current price action, suggesting that the macro trend is still intact. However, immediate momentum has clearly shifted, and bulls must reclaim the $117,000 area quickly to invalidate this breakdown.

Featured image from Dall-E, chart from TradingView