Bitcoin Breaks Support, Bears Take Control Amid Caution

I believe that Bitcoin has recently broken below its two-week consolidation range, with the price falling to a new local low near $114,000. This breach of support at approximately $115,724 indicates a shift in short-term trend momentum, placing bearish pressure on the market. The critical level of $117,000, which formerly acted as support, now turns into a resistance zone that must be reclaimed for any potential bullish reversal. The recent price action, combined with rising volume on the breakdown, reinforces a fragile technical outlook. Market sentiment data from CryptoQuant signals that futures traders are increasingly cautious, with the Bitcoin Advanced Sentiment Index declining to 40%, reflecting heightened risk aversion. Although slightly rebounding to 48%, it remains below the neutral threshold of 50%, indicating prevalent bearish sentiment and reduced investor confidence. Such sentiment trends often precede further downside movement, especially if traders continue to adjust positions defensively, reducing long exposure in anticipation of more declines. The analysis from top analyst Axel Adler supports this view, showing the sentiment index as a key indicator of trader mindset and market risk appetite. The failure to sustain above key support levels and the weakening price structure suggest the possibility of Bitcoin testing the next support zone around $112,000—the previous all-time high—where technical and psychological support may reside. However, a failure to hold that level could accelerate the correction, leading to deeper losses. In conclusion, while the long-term Bitcoin bull trend remains intact due to still-strong support levels, the immediate outlook appears bearish. The market exhibits increasing uncertainty, and caution is warranted until price action and sentiment indicators show signs of recovery. Watching the $112,000 support will be crucial; a hold could provide a foundation for future gains, but a breakdown might signal further downside, emphasizing the importance for traders to stay alert to evolving market cues.