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Bitcoin Sentiment Shifts as Key Indicator Signals Potential Uptrend

Bitcoin's Combined Market Index rises, hinting at growing optimism. Despite a minor price dip, technical indicators suggest underlying strength and potential accumulation.
Published on 2025-05-30

Bitcoin Sentiment Shifts as Key Indicator Signals Potential Uptrend

The cryptocurrency market may appear calm, but a significant indicator is pointing to a shift in Bitcoin sentiment. The 7-day moving average of the Bitcoin Combined Market Index (BCMI) has climbed to approximately 0.6, signaling growing optimism among traders. This rise is often seen as an early sign of a potential Bitcoin price uptrend.

Bitcoin Sentiment and Market Strength

The BCMI, which combines factors like the Fear & Greed Index, unrealized gains (NUPL), investor profitability (MVRV), and spending trends (SOPR), suggests underlying market strength. While the 90-day average of this index remains stable at 0.45, indicating the market isn't overheated, the short-term rebound during a slowdown in profit-taking could mark the start of an accumulation phase. Historically, such shifts have preceded Bitcoin price rallies.

Bitcoin Price Analysis: Dips and Fibonacci Levels

Bitcoin's price dipped slightly by 0.9% to $106,057 in the last 24 hours. Key Fibonacci retracement levels at $110,000, $100,000, $95,000, and $80,000 are critical zones where Bitcoin may face resistance or find support. The Average Directional Index (ADX) at 20.73 indicates some directional momentum, though not a strong trend. The Relative Strength Index (RSI) at 35.75 is near oversold levels, suggesting selling pressure may soon ease.

Expert Predictions and Market Outlook

Amid these developments, financier Anthony Scaramucci predicts Bitcoin could reach $500,000 due to U.S. government spending trends. While the long-term trend remains neutral, the short-term rebound in the BCMI hints at growing confidence in a potential price rally. Traders are closely watching these indicators as Bitcoin navigates a consolidation phase following earlier uptrends in May.

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