Bitcoin Advanced Sentiment Index Flags Strong Bullish Outlook – Insights

Bitcoin is trading at critical levels after spending over a month struggling to break back above the $90,000 mark. Despite several attempts, bulls have failed to reclaim higher ground, leaving BTC stuck in a consolidation range that reflects the broader uncertainty in financial markets. Macroeconomic instability, driven by global trade tensions and erratic policy signals, continues to rattle investor confidence and keep volatility elevated.

BTC’s recent price action has been choppy and indecisive, sending mixed signals as bulls attempt to hold key support levels while bears resist further upside. The pressure is mounting, and bulls now face a critical test as they try to push Bitcoin above resistance zones to confirm a recovery trend.

Yet, despite the bearish overhang, there are signs that the worst may be behind. According to the Advanced Sentiment Index by CryptoQuant, the market currently exhibits strong bullish sentiment. This shift in sentiment could be a leading indicator of renewed buyer interest and growing confidence among market participants. If this optimism holds and is supported by price action, it may mark the beginning of a more stable upward phase for Bitcoin after weeks of uncertainty.

Bitcoin Bullish Sentiment Grows Despite Policy Shock

Bitcoin continues to trade within a tight range, fluctuating between $81,000 and $88,000 as market volatility intensifies. The uncertainty peaked yesterday when U.S. President Donald Trump announced sweeping tariffs on all countries during his “Liberation Day” speech. The unexpected move sent shockwaves through global financial markets, adding to the already fragile macroeconomic landscape. Investors are now left guessing how these policies will evolve — and how they’ll impact high-risk assets like Bitcoin.

The reaction in crypto was immediate, with BTC experiencing sharp intraday swings. Despite the volatility, Bitcoin managed to hold above key support and remains within its recent consolidation zone. Bulls, however, are still struggling to build momentum and push the price decisively above $88,000 — a level that could mark the beginning of a new recovery phase.

Amid the chaos, there is a glimmer of optimism. Top analyst Axel Adler shared fresh insights on X, pointing to the Bitcoin Advanced Sentiment Index, which currently shows strong bullish sentiment. This suggests that beneath the surface, market participants remain optimistic about Bitcoin’s long-term outlook.

While sentiment is a leading indicator and not a guarantee of direction, the rise in positive outlook could signal growing readiness among buyers to support higher prices — especially if macro conditions stabilize. For now, Bitcoin remains in a critical range, with its next move likely to determine whether bulls can reclaim control or if further downside is in store.

Price Struggles Below 200-Day Moving Averages

Bitcoin is currently trading just above the $81,000 level, holding a key support zone but continuing to show weakness below major technical indicators. The 200-day moving average (MA) and exponential moving average (EMA), both around $86,000, have acted as strong resistance, and BTC has repeatedly failed to reclaim them. This ongoing rejection highlights the market’s fragile state and the bulls’ struggle to regain momentum.

For now, the $81K level is the last line of defense. If bulls can hold this support and consolidate above it, there’s still a chance to stabilize the trend and prepare for a push higher. However, if this level breaks, it could trigger a deeper correction and open the door to lower support zones.

The most important level on the upside remains the $90,000 mark. Reclaiming this level would not only confirm renewed bullish momentum but also bring BTC back into a stronger technical position, potentially resetting the trend toward new highs. Until then, the market remains on edge. Bulls must defend support and build strength — or risk watching Bitcoin slide further into bearish territory in the coming sessions.

Featured image from Dall-E, chart from TradingView