After five consecutive days of pessimism in Bitcoin’s derivatives markets, a key indicator for trader sentiment has flipped to positive. This shift echoes a similar pattern from early August that preceded a price rebound. ğŸ§
CryptoQuant analyst Darkfost highlights the BTC futures composite sentiment index as a strong barometer for short-term market trends. It has now moved back into positive territory, mirroring a similar scenario observed in early August when it also fell below -1 before a significant price rally. 📈
This positive signal is further corroborated by a recent drop in Binance’s Taker Buy-Sell Ratio to its cycle low of 0.95, which historically has marked attractive entry points for contrarian buyers anticipating a sentiment shift. 💰
The shift comes amid heightened anxiety in the crypto community, as social media commentary on BTC reached its most bearish level since late June, historically aligning with potential price bottoms. 📉
While Bitcoin is currently trading around $113,084 after losing 0.7% on the day, a more comprehensive perspective reveals that it’s up almost 86% year-to-date despite being down nearly 9% from its August peak. 📈
Technical analysts point to the $110K–$112K range as a critical battleground, where Bitcoin will need to hold its long-term ascending channel’s support to avoid a drop towards $104,000. 💥
This potential shift towards positive momentum in the market could signal the start of a significant price rebound.