Bitcoin’s price has risen from approximately $74,000 to $101,000, but futures market sentiment shows caution, indicating potential risk factors. The sentiment index is at 0.4, revealing bearish feelings among investors. Analysts suggest that despite a possible bullish breakout, risks remain due to macroeconomic uncertainties and a recent ‘death cross’ on the price chart.
According to a recent analysis by CryptoQuant, Bitcoin (BTC) has experienced a steady price increase from approximately $74,000 in November 2024 to a peak of $101,000 in early February 2025. However, the corresponding sentiment in the futures market has not improved, indicating caution among investors despite the price gains.
The surge in Bitcoin’s price was followed by a significant pullback due to tariff announcements by US President Donald Trump. Subsequently, BTC hit a local bottom of $74,508 on April 6 and has since recovered to trade in the mid $80,000 range. Despite this recovery, sentiment in the futures market has seen a decline since February, reflecting a cooling of investor interest.
CryptoQuant contributor abramchart highlighted this dissonance, suggesting a potential increase in caution or profit-taking strategies among investors. This trend could be influenced by macroeconomic uncertainties and regulatory concerns. The current BTC futures sentiment index is around 0.4, indicating a predominantly bearish outlook with established resistance and support levels that further illustrate the hesitancy in the market.
Bitcoin’s average price has fluctuated between $70,000 and $80,000, signalling market indecision amidst increasing tariff tensions. Should futures sentiment remain low, BTC might experience extended price consolidation or potential downward pressure; however, a bullish catalyst could trigger a reversal in sentiment.
Some analysts believe Bitcoin is approaching a breakout phase after consolidating in the mid-$80,000s. On-chain metrics suggest it may be undervalued, supported by indicators like BTC exchange reserves. Furthermore, the weekly Relative Strength Index suggests a potential bullish rally towards $100,000 as it breaks out of a long-term downward trendline.
Nevertheless, risks such as the recent emergence of a ‘death cross’ on the price chart and ongoing macroeconomic concerns related to trade tariffs may severely impact market sentiment. Currently, BTC is trading at $83,917, representing a 1.8% decrease over the past 24 hours.
