The crypto market is still suffering from Bitcoin’s price drop on Saturday. The largest cryptocurrency by market cap took most of the market down after succumbing to bearish trends. But it seems this isn’t the end as investors expect the digital asset to continue its decline.
Another 5% loss by the end of the month
March is still in its infancy but has already started with bad news for the market. This is consistent with the bearish sentiment expressed by participants on Coinmarketcap’s price estimation function. The product collects votes from community members about where they see a digital asset’s price going in the future and returns a median and average expected price. It’s incredibly bearish for Bitcoin as investors anticipate another downtrend.
With over 11,000 votes collected for the month of March, expectations for BTC have turned negative. The median price expectation was $21,084 at the end of March, down 5.67% from current prices. Should this prediction come true, it would mean that Bitcoin would have to lose another $1,200 in value, further sending the crypto market bearish.
Investors are still very bearish on BTC | Source: Coinmarketcap
Voters maintained the same bearish outlook for the price over the next several months. With each passing month, expectations for the digital asset are dropping to as much as 17% losses expected over the next three months. By the end of May, more than 4,400 voters valued BTC as low as $18,521.
But what does investor sentiment say about Bitcoin?
According to the Crypto Fear & Greed Index, investors are still very neutral when it comes to the market. But it’s not far to see sentiment turn negative and fearful very quickly, especially with the bitcoin price crash.
BTC loses $1,200 in an hour | Source: BTCUSD on TradingView.com
The thing about a neutral vibe like this is that it’s pretty easy to affect both sides. With prices low, the likelihood of a sentiment drop increases. This can affect the price of Bitcoin and other cryptocurrencies and lead to further downtrends.
But as high as the possibility of a negative movement is, the premise for a positive movement is just as strong. If momentum picks up quickly, prices could also surge sharply, putting $25,000 in sight again.
BTC is now seeing crucial support at $22,000, but there is still plenty of resistance at $22,700 that the digital asset would need to beat to resume its bullish rally.
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