Bitcoin Faces Bearish Turn as Sentiment and Technicals Turn Negative, Key Support at Risk

I observe that Bitcoin has recently broken below its two-week consolidation range, dropping from roughly $115,724 to around $114,000, indicating a potential shift in market momentum towards bearishness. The immediate resistance level is now at $117,000, which previously acted as support, and must be reclaimed for a bullish reversal to be underway. The sentiment indicator from CryptoQuant swung to bearish, with futures market sentiment declining below the 50% threshold—a clear sign of increasing trader caution and bearish dominance. Despite a slight rebound to 48%, this still reflects significant risk aversion among traders, suggesting that the market is preparing for potential further declines. The Bitcoin Advanced Sentiment Index, which gauges investor mood and futures positioning, has fallen to 40%, reinforcing the narrative of growing risk aversion and bearish outlook within the crypto futures market. Although there's a temporary bounce back from this low, as long as the index remains below 50%, market confidence in sustained upward movement is weak. The technical price action, including the recent drop below key support and the trading volume spike, signals weakening short-term strength, with critical support levels around $112,000—near the previous all-time high—likely to be tested next. If this support fails, a deeper correction could ensue. While the long-term bullish trend remains intact due to solid support levels and macro factors, the short-term outlook is clearly cautious. The current market mood suggests traders are hedging, reducing long exposure, and preparing for further downside if key technical levels are broken. The next few trading sessions will be decisive: if bulls can defend the $112,000 zone and reclaim $117,000 convincingly, bullish momentum could be restored. Otherwise, the bearish sentiment might intensify, leading to further declines and a potential trend reversal. Overall, risk management and close monitoring of key support zones are essential during this fragile phase.