Bitcoin Futures Sentiment Index Signals Caution
As Bitcoin (BTC) continues its upward trajectory in price, the sentiment in the cryptocurrency’s futures market tells a different story. Despite reaching a peak of $101,000 in early February 2025, recent announcements regarding trade tariffs by US President Donald Trump have caused risk-on assets, including BTC, to experience a significant pullback.
After hitting a potential local bottom of $74,508 on April 6, Bitcoin has managed to recover some of its losses and is currently trading in the mid $80,000 range. However, the futures sentiment for BTC has been on a decline since February, even as the price remains near its highs. This divergence suggests a cooling interest or increased fear in the futures market, possibly due to macroeconomic uncertainty, regulatory concerns, or expected corrections.
The BTC futures sentiment index indicates a predominantly bearish sentiment across futures markets, with a resistance zone around 0.8 and a support level near 0.2. Currently hovering around 0.4, the index points to a cautious outlook among traders.
Similarly, Bitcoin’s average price has been steadily declining from its early 2025 highs, ranging between $70,000 and $80,000. This market indecision is likely a result of heightened tariff tensions and the cooling sentiment in the futures market.
According to analysts, if futures sentiment remains low, Bitcoin could face extended price consolidation or downward pressure in the near term. However, any positive catalyst could quickly shift sentiment and reignite upward momentum for the cryptocurrency.
Is BTC Close To A Momentum Shift?
Despite the current market conditions, some analysts believe that Bitcoin may be nearing a breakout. On-chain metrics suggest that BTC may be undervalued at its current levels, with indicators like BTC exchange reserves and the Stablecoin Supply Ratio supporting this view.
Moreover, momentum indicators such as Bitcoin’s weekly Relative Strength Index have started to break out of a long-standing downward trendline, raising hopes for a potential bullish rally back toward $100,000.
However, there are still risks to consider, including the recent appearance of a ‘death cross’ on BTC’s price chart and ongoing macroeconomic concerns related to trade tariffs. These factors could continue to weigh heavily on market sentiment in the near term.
At the time of writing, Bitcoin is trading at $83,917, down 1.8% over the past 24 hours. As the market remains uncertain, traders and investors are advised to closely monitor the evolving sentiment in the futures market for potential clues about Bitcoin’s future price movements.
The original article can be found at NewsBTC.