Bitcoin Advanced Sentiment Index Signals Strength – Bears Face Risks As Bulls Take Control

Since Bitcoin reclaimed the $90K level on Tuesday, market sentiment has started to shift dramatically. After weeks of uncertainty and sideways movement, Bitcoin’s strong price recovery is bringing a wave of optimism back into the crypto space. Price action is signaling the potential start of a major recovery rally, with bulls gaining momentum and eyeing higher resistance levels.

However, investors must remain cautious. Global tensions, particularly the ongoing trade war between the US and China, continue to cast a shadow over financial markets. These geopolitical factors could heavily influence Bitcoin’s trajectory in the coming months—or even years—depending on how negotiations evolve.

Despite these risks, new data from CryptoQuant supports the growing bullish narrative. The Bitcoin Advanced Sentiment Index has climbed to a strong reading of 67%, suggesting that confidence is returning among market participants. Historically, such elevated sentiment levels have been linked with sustained bullish trends, especially when reinforced by solid technical breakouts.

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