The crypto market is still reeling from Bitcoin’s price drop on Saturday. The largest cryptocurrency by market cap took the majority of the market down with it after succumbing to bearish trends. But it seems that this is not 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 early days but it has already started out with bad news for the market. This is in line with the bearish sentiment expressed by participants in the space on Coinmarketcap’s Price Estimates feature. The product collects votes from community members regarding where they see the price of a digital asset going forward, giving out a median and an average expected price. For bitcoin, it is incredibly bearish seeing as investors expect more downtrend.
With over 11,000 votes collected for the month of March, expectations have turned negative for BTC. The median price expectation by the end of March came out to $21,084, which represents a 5.67% decline from current prices. If this prediction were to come to pass, it would mean that bitcoin would have to lose another $1,200 from its value, plunging the crypto market further into the bear.
Investors still very bearish toward BTC | Source: Coinmarketcap
Voters also maintained the same bearish outlook for the price over the next couple of months. With each month, expectations for the digital asset fall lower to as high as 17% losses expected in the next three months. By May’s end, more than 4,400 voters put the price of BTC at a low $18,521.
But What Does Investor Sentiment Say About Bitcoin?
According to the Crypto Fear & Greed Index, investors are still feeling very neutral when it comes to the market. But it is not a long shot to see sentiment turning negative and fearful very quickly, especially with the bitcoin price crash.BTC loses $1,200 in one hour | Source: BTCUSD on TradingView.com
The thing about neutral sentiment such as this one is that it is quite easy to influence either side. Since prices are low, the chances of a decline in sentiment become higher. This can affect the price of bitcoin and other cryptocurrencies, resulting in further downtrends.
However, just as the possibility of a negative movement is high, the premise for a positive movement is just as strong. If momentum were to pick up quickly, then prices could also rally sharply, putting $25,000 in view once more.
BTC is now seeing crucial support at $22,000 but there is still a lot of resistance at $22,700 that the digital asset would have to beat to restart its upward rally.Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from NewsBTC, chart from TradingView.com