Bitcoin sentiment cools as price steadies above $90,000

Bitcoin (CRYPTO:BTC) has maintained its position above $90,000 in recent days, but market sentiment, as measured by the Crypto Fear Greed Index, has shown signs of cooling.

On April 23, the index reached a score of 72, reflecting a “Greed” sentiment as Bitcoin returned to the $90,000 level, according to CoinMarketCap data.

However, by April 25, the sentiment score had dropped to 60, even as Bitcoin continued to trade in a narrow range between $91,800 and $94,304.

Analysts have expressed caution regarding the sustainability of the current rally.

“Given that our stablecoin minting indicator has yet to return to high-activity levels, we remain cautious about the sustainability of the current Bitcoin rally,” stated Markus Thielen, head of research at 10x Research, according to the April 23 analysis.

Bitfinex analysts noted that while Bitcoin’s relative strength against US equities appears notable, it is not yet confirmed as a structural trend.

“Buyers are likely going to step in, and then we’ll be continuing our path toward a new [all-time high],” said Michaël van de Poppe, founder of MN Trading Capital, as quoted on April 24.

Despite the stable price, the overall crypto market remains heavily weighted toward Bitcoin, with its dominance above 64%.

The altcoin season index from CoinMarketCap sits at a low 17 out of 100, indicating limited momentum for alternative cryptocurrencies.

ETF inflows have also played a role in supporting Bitcoin’s price.

Crypto analyst Trader T highlighted that US-based spot Bitcoin ETFs saw $2.6 billion in net inflows over four trading days through April 24, marking their third-best week since launching in January 2024.

Social media sentiment has shifted to a more bullish tone since Bitcoin’s price climbed into the mid-$80,000 range, according to crypto analytics firm Santiment.

As April progresses, traders and analysts continue to watch for signs of either renewed momentum or further consolidation in the Bitcoin market, with forecasts suggesting the price could remain around $90,000 to $95,000 in the near term.

At the time of reporting, the Bitcoin (BTC) price was $93,346.18.