Bitcoin has broken down from the two-week consolidation range that held the market between $115,724 and $122,077, reaching a new local low of nearly $114,000. The drop sees a change in momentum in the short term and places the bull on defense. The $117,000 level (the main support zone) serves as an immediate resistance that must be played back to indicate the possibility of a reversal.
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Breakdowns are coming at a critical time as emotions across the market are beginning to change. According to fresh data from Cryptoquant, futures sentiment has become bearish today, falling sharply before bounces slightly to 48%. Signals below 50% signal, although still close to neutral, dominate in positioning. This puts pressure on already vulnerable technological structures, suggesting that traders have more downsides.
Unless the Bulls can quickly retrieve $117K and close the strength down, Bitcoin risks entering a deeper correction phase. The broader Bull trend remains in place as long-term support levels remain undefeated, but this breakdown shows the first significant loss of momentum in a few weeks. Future sessions will be important in determining whether this is just a shakeout or the beginning of a bigger trend reversal.
Bitcoin Advanced Sentiment Index Signals Increase Bearish Pressure
Top analyst Axel Adler shares new insights into Bitcoin Advanced Sentiment Index, a key metric used to measure futures market positioning and the mood of a wider investor range. According to Adler, the index has recently dropped to 40%. This is a sharp decline that reflects the position of risk aversion and bearishness. The metric has since been rebounded to 48%, but falls below the intense 50% threshold, separating bullish and weakened territory.
This rebound indicates a temporary pause of negative emotions, while the broader trend indicates a transition from bullish attention to bearish fear. Adler notes that as long as the index remains below 50%, the market lacks the confidence needed to maintain its upward momentum. Traders are becoming increasingly defensive, reducing long exposures and even more downside preparations.
As momentum continues to deteriorate, BTC can test the $112,000 level. This zone can serve as psychological and technical support, but if not retained, it can cause deeper corrections.
It appears that the market is in a more risky stage as it is packed into durable territory and weakens price action. This has not yet shown a complete reversal of the trend, but reflects a growing uncertainty. Care must be taken until emotions and prices regain high ground. The next move will depend on whether the Bulls are able to defend $112,000 or whether the bears have full control over the trend.
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BTC loses critical support after a failure
Bitcoin has officially broken down from its two-week consolidation range, losing its key support level of $115,724 highlighted on the charts. The price reached a new local low at $114,116 before recovering slightly to the $115,100 zone. This shows a major change in momentum as the Bulls were unable to follow the lower limits of the area they had held firmly during July.
On the 12-hour chart, the volume associated with this failure increases, adding weight to the bearish movement. BTC is currently under the 50-day SMA ($116,981) and is seeing weaknesses in the short-term structure. The next major support is located at around $112,000, a record set in May. This could serve as a psychological and technical floor.
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The 100- and 200-day SMA is far below current price action, suggesting that macro trends are still unharmed. However, the immediate momentum is clearly changing and the bull must quickly reclaim the $117,000 area to negate this breakdown.
Dall-E special images, TradingView chart
