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- Bitcoin trades at $112K with neutral sentiment and weak short-term momentum.
- 90% of BTC supply in profit signals strong bull market conditions.
- Derivatives flows remain crucial for a breakout beyond $115K.
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Bitcoin [BTC] was trading at $112,100 at press time, posting a modest 0.36% daily gain. Despite the slight uptick, short-term indicators continue to flash bearish signals, keeping traders cautious about whether the top cryptocurrency can reclaim momentum toward $115,000.
Neutral Sentiment Dominates the Market
Market sentiment remains balanced, with the Fear and Greed Index standing at 46, reflecting a neutral outlook. Over the past week, Bitcoin has retraced from $117,000 to a local low of $109,000, leaving investors on edge.
Positive flows into Bitcoin spot ETFs since August 25 have helped maintain stability. However, analysts warn that derivatives flows will be the real catalyst for a sustained bullish phase.
90% of Bitcoin Supply in Profit — A Key Bullish Signal
According to CryptoQuant analyst Darkfost, nearly 90% of BTC supply is currently in profit — a level often associated with strong bull markets. While high profitability can sometimes suggest overheated conditions, the analyst argued that it is necessary to fuel the euphoric waves that push markets higher.
Still, Darkfost cautioned that if supply in profit were to dip below 90%, it could trigger a corrective phase. For now, long-term holders are urged to remain patient as short-term trends lean bearish.
Derivatives Market at a Tipping Point
On X, analyst Axel Adler Jr noted that the Futures Flow Index stood at 43%, signaling slight bearishness but still close to neutral. A few hours of sustained positive flows in derivatives could shift momentum back toward bullish territory.
The market currently remains at the border of bearish mode: integral index = 43% (below the 45% threshold), meaning pressure still predominates, but there's no extremum – we're close to the neutral zone. The $111K price is trading at a discount to Fair Value of $115K by 3%. No… pic.twitter.com/5BRPnqq0PP
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 27, 2025
Without renewed derivatives confidence, any move toward $115K could prove temporary rather than the start of a broader recovery.
Also Read: Charles Hoskinson Predicts Bitcoin $500K Price and $10 Trillion Market Cap by 2030
On the 4-hour BTC/USDT chart, Bitcoin is climbing toward the 50-period Moving Average near $113K, acting as dynamic resistance. However, trading volume has declined, and the Accumulation/Distribution (A/D) indicator shows weak buying pressure, underlining bearish momentum.
Bitcoin remains at a critical crossroads, balancing between neutral sentiment and bearish short-term signals. A sustained push above $115,000 would require stronger derivatives flows and buying volume. Until then, investors should prepare for potential volatility while long-term fundamentals stay intact.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
