Bitcoin Drops to $113K as Retail Sentiment Turns Bearish
Bitcoin price dipped to $113,646, marking a 1.2% daily loss and an 8.5% drop from its mid-August peak. The Fear & Greed Index fell 12 points to 44, signaling bearish retail sentiment at its weakest since late June. Derivatives data show 24-hour trading volume rose 6.2% to $83.7 billion while open interest slipped 0.8%, suggesting traders are reducing risk amid higher volatility. On-chain metrics reveal retail traders shifting to pessimism, but whales (10–10,000 BTC wallets) added over 20,000 BTC since mid-August. Glassnode reports cooling spot momentum with RSI weakening and sellers dominating order books. Futures funding rates remain positive, and options markets show elevated open interest and skew, indicating demand for downside hedges. Institutional flows stay strong, with $880 million streaming into Bitcoin ETFs last week. Although user activity and fees declined, 96% of supply remains in profit. The Bitcoin price outlook hinges on whether ETF demand and whale accumulation can counteract bearish spot signals or if the price will consolidate further.
Neutral
The article highlights mixed signals in the Bitcoin market. Retail sentiment has turned sharply bearish, driven by a 12-point drop in the Fear & Greed Index and reduced open interest in derivatives markets—classic markers of short-term risk aversion. Historical patterns (e.g., late-June sell-off) show that extreme bearishness often precedes price recoveries, but immediate retail pessimism can weigh on near-term trading. Conversely, whale accumulation (20,000 BTC added since mid-August) and $880 million of ETF inflows indicate strong underlying demand. Glassnode’s data on weakening spot momentum and elevated options skew point to cautious trading, yet institutional flows and high profitability (96% supply in profit) offer structural support. Overall, the conflicting bearish retail and bullish institutional signals suggest no clear directional bias, warranting a neutral market impact assessment.