Bitcoin sentiment drops to 46.1% as price hovers around $105,000

Bitcoin sentiment has dipped below the neutral threshold, currently standing at 46.1%, as the price of the cryptocurrency hovers around $105,000. This shift in sentiment indicates a cautious market environment where investors are hesitant to drive further gains without stronger confirmation signals. Despite a recent rebound from lower levels, the lack of significant trading volume and the stagnation of key indicators suggest limited conviction behind the price movement.

The Advanced Sentiment Index, which tracks market optimism, peaked above 80% in early June but has since declined steadily. The index's chart, covering the period from May 16 to June 13, shows multiple instances where sentiment dropped below 20%, aligning with short-term price declines. Although Bitcoin has recovered from these lows, investor confidence remains subdued. The bell curve model used in the index emphasizes that most sentiment readings have clustered between 40% and 65%, indicating a lack of extreme bullish or bearish positions and suggesting uncertainty among traders.

Recent price action within the $103,000 to $105,000 range has not been accompanied by new volume inflow. Net buy volume and volume delta show almost no change, indicating that market participants did not support the rise to a sufficient degree. This stagnation in indicators suggests a lack of conviction behind the price movement.

Bitcoin was trading at approximately $104,950 at the time of writing, reflecting a slight decrease over the past 24 hours. The price surged above $106,000 but faced resistance and returned to a tighter trading band. Despite fluctuations, the asset has not broken out of its recent consolidation pattern. The volume-to-market cap ratio over the last 24 hours is 2.38%, indicating moderate trade. The total circulating supply of Bitcoin has grown to 19.87 million BTC, approaching the protocol-imposed limit of 21 million.

Analysts are monitoring the sentiment index, which needs to exceed 60% to validate a sustainable uptrend. An increase in open interest and net taker volume is unlikely to achieve that level. In the absence of these conditions, the market is vulnerable to retesting lower support areas between $102,000 and $103,000. This cautious sentiment and lack of volume support suggest that Bitcoin may face challenges in maintaining its current price levels without stronger market signals.