BEARISH SENTIMENT MAY SOON ABATE ACCORDING TO COINSHARES AND BITCOIN METRICS

Last updated: June 20, 2025, 00:00 | Written by: Changpeng Zhao

Is the crypto winter finally thawing? While key Bitcoin (BTC) metrics don t paint a pretty picture, the bears could be running on fumes. Contrary to analysts warning that Bitcoin could dip to $38,000 before an eventual breakout, CoinShares and Arcane Research suggest that the tide could be turning.The cryptocurrency market, particularly Bitcoin, has been navigating a turbulent period, marked by significant price fluctuations and a prevailing sense of caution.However, recent analysis from Coinshares, coupled with key Bitcoin metrics, suggests that this bearish sentiment might be nearing its end. 0 likes, 0 comments - regina_fx_cryptocurrency on Septem: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (B Annabelle Daniel 🔹 on Instagram: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (BTC) metrics don t paint a prettyFor months, investors have braced for further downturns, with some analysts even predicting a plummet to as low as $38,000. While key Bitcoin () metrics don t paint a pretty picture, the bears could be running on fumes.Contrary to analysts warning that Bitcoin could dip to $38,000 before an eventual breakout, CoinShares and Arcane Research suggest that the tide could be turning.But could the tide be turning? This downtrend persists amid bearish sentiment, with BTC remaining below the $90,000 threshold. However, despite this prolonged downturn, year-to-date inflows remain positive at $912 million. Additionally, reduction in short-Bitcoin positions last week suggests diminishing bearish sentiment toward the leading cryptocurrency.This article delves into the factors contributing to the potential shift in market dynamics, examining the data, insights from Coinshares and other research firms, and what it all means for the future of Bitcoin and the broader crypto landscape. Top cryptocurrency prices and charts, listed by market capitalization. Free access to current and historic data for Bitcoin and thousands of altcoins.We'll explore the nuances of institutional investment, volatility indicators, and social media sentiment to provide a comprehensive understanding of what lies ahead. While cardinal Bitcoin metrics don t overgarment a beauteous picture, the bears could beryllium moving connected fumes.Contrary to analysts informing that Bitcoin could dip to $38,000 before an eventual breakout, CoinShares and Arcane Research suggest that the tide could beryllium turning.Get ready to uncover whether the bears are truly running out of steam and if a bullish resurgence is on the horizon.

Analyzing Bitcoin's Recent Performance and Market Sentiment

Bitcoin's journey has been anything but smooth lately.The digital asset has struggled to maintain key support levels, leading to increased uncertainty about its short-term trajectory. 0 likes, 0 comments - _nicky_love.333__ on Aug: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (B Nicky_love on Instagram: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (BTC) metrics don t paint a pretty picture, the bears couldWe've witnessed dips below critical thresholds, fueling fears of a prolonged bear market.Let's break down some key observations:

Price Volatility: The past few months have seen considerable price swings, making it challenging for investors to predict future movements.
Support Levels: Breaching key support levels has added to the bearish narrative, indicating potential for further downside.
Overall Sentiment: A general feeling of caution and skepticism has permeated the market, impacting investment decisions.

Despite these challenges, it's essential to look beyond the immediate price action and consider broader market indicators.The year-to-date inflows remaining positive at $912 million, showcases underlying strength and continued interest in Bitcoin. While key Bitcoin ($103,689.00 ) (BTC) metrics don t paint a pretty picture, the bears could be running on fumes. Contrary to analysts warning that Bitcoin ($103,689.00 ) could dip to $38,000 before an eventual breakout, CoinShares and Arcane Research suggest that the tide could be turning.Understanding these factors is crucial for anyone navigating the crypto market.

Coinshares' Perspective: Why Bearishness May Be Fading

Coinshares, a leading digital asset investment firm, provides valuable insights into market trends and investor behavior.Their recent analysis suggests that the prevailing bearish sentiment may be losing its grip.This view is particularly interesting considering the recent institutional outflows.

So, what's driving this perspective?Here are some key factors:

Reduction in Short Positions: A decrease in short-Bitcoin positions indicates that fewer investors are betting against the cryptocurrency.This suggests a weakening conviction in the bearish narrative.
Institutional Outflows Not Telling the Whole Story: While institutional Bitcoin outflows of $55 million last week seem negative, they could be a temporary adjustment rather than a long-term trend.
Positive Year-to-Date Inflows: Despite recent outflows, the overall inflow for the year remains positive, signaling sustained institutional interest.

Coinshares' analysis offers a glimmer of hope for Bitcoin enthusiasts. 2,114 likes, 0 comments - daniel_elizadehoption on J: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (B FOREX ACCOUNT MANAGER on Instagram: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (BTC) metrics don't paint a pretty pictureIt highlights the importance of considering multiple factors when assessing market sentiment and avoiding knee-jerk reactions based solely on price movements.

Bitcoin Metrics: Unveiling the Underlying Signals

Beyond market sentiment, several Bitcoin metrics offer valuable clues about the potential for a shift in market dynamics.These metrics provide a deeper understanding of the network's health, investor behavior, and overall market conditions. Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (BTC) metrics don t paint a pretty picture, the bears could be running on fumes. Contrary to analystsLet's examine some key indicators:

Volatility: Bitcoin's 30-day implied volatility has fallen to an 11-month low.This suggests that the market anticipates less price movement in the near term.While low volatility can indicate stability, it can also precede a significant price swing.
On-Chain Analysis: Analyzing on-chain data, such as transaction volume, active addresses, and miner activity, can provide insights into the underlying health of the Bitcoin network.
Long-Term Holder Behavior: Examining the behavior of long-term Bitcoin holders can reveal their conviction and influence on market dynamics. Ao contr rio dos analistas alertando que o Bitcoin pode cair para US$ 38.000 antes de um eventual rompimento, a CoinShares e a Arcane Research sugerem que a mar pode estar mudando. Em resumo, as sa das institucionais de Bitcoin foram negativas em quatro das ltimas cinco semanas, totalizando US$ 55 milh es. O total de ativos sobAre they accumulating or distributing their holdings?

By monitoring these Bitcoin metrics, investors can gain a more informed perspective on the potential for a shift away from bearish sentiment.Keep a close eye on these indicators.

The Bitcoin Bull-Bear Market Cycle Indicator

CryptoQuant's analysis, focusing on the Bitcoin Bull-Bear Market Cycle Indicator, provides an interesting perspective.This indicator, designed to gauge the overall market trend, is currently at its most bearish level of the cycle.Historically, such levels have either preceded a sharp correction or marked the beginning of a downturn.

Understanding the Indicator

The Bitcoin Bull-Bear Market Cycle Indicator essentially attempts to define where we are in the typical Bitcoin market cycle. While key Bitcoin (BTC) metrics don t paint a pretty picture, the bears could be running on fumes. Contrary to analysts warning that Bitcoin could dip to $38,000 before an eventual breakout, CoinShares and Arcane Research suggest that the tide coulThese cycles are characterized by:

Accumulation Phase: Following a bear market bottom, a period of slow and steady accumulation.
Bull Run: A period of rapid price appreciation fueled by increased demand and positive sentiment.
Distribution Phase: As prices reach peak levels, early investors begin to take profits, distributing their holdings.
Bear Market: A period of declining prices and negative sentiment, often triggered by external factors or profit-taking.

The indicator attempts to identify where we are in this cycle based on a combination of on-chain metrics, trading volume, and other relevant data points. Despite last week s institutional Bitcoin outflows of $55 million, negative sentiment could be on the wane.Currently, it suggests that we might be near the end of a bear market phase.

Implications of the Indicator's Current Reading

The fact that the indicator is at its most bearish level presents two potential scenarios:

A Final Sharp Correction: We could see one last significant price drop before the market bottoms out and begins a new accumulation phase.
The Beginning of a Downturn: This reading could signal the start of a prolonged bear market, with prices continuing to decline for an extended period.

Which scenario is more likely?That's the million-dollar question. 0 likes, 0 comments - amelia_ortiz213 on Octo: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (B CryptoFactors such as macroeconomic conditions, regulatory developments, and institutional adoption will all play a role in determining the market's future direction.However, the indicator's historical accuracy suggests that it's worth paying close attention to its signals.

Potential for a Bullish Reversal: Factors to Watch

While the market remains cautious, several factors could contribute to a potential bullish reversal.Identifying these catalysts is crucial for anticipating future price movements.

Increased Institutional Adoption: Further adoption of Bitcoin by institutional investors could inject significant capital into the market, driving up prices.
Positive Regulatory Developments: Clear and favorable regulations could boost investor confidence and attract more participants to the crypto space.
Technological Advancements: Innovations in Bitcoin technology, such as improvements to scalability and security, could enhance its appeal and drive demand.
Macroeconomic Factors: External economic factors, such as inflation and interest rates, can influence investor behavior and impact the demand for alternative assets like Bitcoin.

Keeping a close watch on these factors can help you anticipate potential shifts in market sentiment and position yourself accordingly.

The Bearish ""Three Pushes to a High"" Pattern

According to Bollinger Bands analysis, the daily chart shows a bearish ""Three Pushes to a High"" pattern.This is a technical pattern often associated with trend reversals. Bearish sentiment may soon abate according to Coinshares and Bitcoin metricsUnderstanding this pattern is crucial for traders and investors alike.

What is the ""Three Pushes to a High"" Pattern?

The ""Three Pushes to a High"" pattern is a bearish reversal pattern that occurs after an uptrend.It consists of three consecutive attempts to make a new high, with each attempt failing to sustain the upward momentum.Here's how it typically unfolds:

First Push: The price makes a new high, continuing the existing uptrend.
Second Push: The price attempts to make another new high but fails to reach the same level as the first push. The coming days will be crucial in determining whether BTC can regain momentum or if the bearish sentiment will persist, keeping prices under pressure. Bitcoin Drops Below $90K As Market Hits New Lows. Bitcoin has lost key support after days of uncertainty regarding its short-term direction.This indicates weakening buying pressure.
Third Push: The price makes a final attempt to push higher, but it fails to surpass the second push and often results in a sharp reversal.

The pattern is often confirmed when the price breaks below a key support level following the third push, signaling a potential shift to a downtrend.

Implications for Bitcoin

The presence of this pattern on the Bitcoin daily chart suggests that the recent uptrend may be losing steam. Bearish sentiment may soon abate according to Coinshares and Coin SurgesThe three pushes to a high indicate that buyers are becoming exhausted, and sellers are gaining control. CryptoQuant s analysis, published on March 11, reveals that nearly every major indicator now signals caution. The Bitcoin Bull-Bear Market Cycle Indicator is currently at its most bearish level this cycle a level that, in previous cycles, has either preceded a sharp correction or marked the beginning of a downturn.A breakdown below the $102,900 support level could be a confirmation of this pattern, potentially shifting the high-timeframe market structure to bearish.It doesn't mean Bitcoin is guaranteed to crash, but it's a yellow flag.

Social Media Sentiment: A Contrarian Indicator?

Social media platforms have become increasingly influential in shaping market sentiment.Monitoring discussions and posts related to Bitcoin can provide insights into the prevailing mood of the crypto community.

However, it's important to approach social media sentiment with caution. Despite last week s institutional Bitcoin outflows of $55 million, negative sentiment could be on the wane. Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics EcosystemIt can often be driven by hype, fear, or misinformation.In some cases, extremely negative sentiment on social media can actually be a contrarian indicator, suggesting that the market is oversold and due for a rebound.

Currently, while there is a mixture of opinions, a lot of social media accounts are pointing out that ""Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics"". Despite last week s institutional Bitcoin outflows of $55 million, negative sentiment could be on the wane. Continue readingThis shows some trust in the Coinshares research and a potential underlying optimism.

Navigating the Market: Practical Advice for Investors

Given the current market uncertainty, it's essential to approach investing in Bitcoin with caution and a well-defined strategy.Here are some practical tips:

Do Your Own Research: Don't rely solely on news headlines or social media sentiment. Skip to main content Bitcoin Insider. MenuConduct thorough research and understand the underlying fundamentals of Bitcoin.
Diversify Your Portfolio: Don't put all your eggs in one basket. 11 likes, 0 comments - mrs_sarah_richard_fx on J: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (B Sarah Richard on Instagram: Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics While key Bitcoin (BTC) metrics don t paint a pretty picture, the bearsDiversify your investments across different asset classes to mitigate risk.
Manage Your Risk: Set clear risk management parameters, such as stop-loss orders, to protect your capital.
Stay Informed: Keep up-to-date with the latest market news, analysis, and regulatory developments.
Invest Long-Term: Consider a long-term investment horizon to ride out short-term price fluctuations.

Key Takeaways and Future Outlook

The Bitcoin market is currently at a critical juncture.While bearish sentiment has prevailed in recent months, there are signs that this trend may be losing momentum. According to Cointelegraph, Bitcoin (BTC) is at risk of entering a new bear market as several BTC price metrics indicate a bearish divergence. On March 27, discussions on social media highlighted concerning signals from the Bitcoin Macro Index, developed by Capriole Investments.Coinshares' analysis, coupled with key Bitcoin metrics, suggests that the bears could be running out of steam.

However, caution is still warranted. The daily chart shows a bearish Three Pushes to a High pattern according to Bollinger Bands analysis. A breakdown below the $102,900 support could shift the high-timeframe market structure to bearish. Bitcoin s 30-day implied volatility has fallen to an 11-month low, signaling reduced price movement expectations.The ""Three Pushes to a High"" pattern and the bearish level of the Bitcoin Bull-Bear Market Cycle Indicator indicate potential for further downside.The coming days will be crucial in determining whether Bitcoin can regain momentum or if the bearish sentiment will persist.Keep monitoring the market.

Ultimately, the future of Bitcoin will depend on a complex interplay of factors, including institutional adoption, regulatory developments, technological advancements, and macroeconomic conditions.By staying informed and adopting a disciplined investment approach, investors can navigate the market effectively and capitalize on future opportunities.

So, is the bearish sentiment about to abate?The data suggests it's possible, but vigilance and a well-informed strategy are key.Don't just sit on the sidelines; actively research and learn to make informed decisions!