The crypto market is still reeling from Saturday’s drop in Bitcoin prices. The largest cryptocurrency by market cap took the majority of the market down after succumbing to the bearish trend. But it seems that this is not the end as investors expect the digital asset to continue to decline.
Another 5% Loss At The End Of The Month
March is still early but it has started with bad news for the market. This is in line with the bearish sentiment expressed by participants in the space in Coinmarketcap’s Price Estimates feature. The product collects votes from community members on where they see the price of digital assets moving forward, giving average and median expected prices. For bitcoin, it is incredibly bearish as investors expect a downward trend.
With more than 11,000 votes collected for the month of March, expectations have been negative for BTC. The average price expectation at the end of March was $21,084, which represents a 5.67% decrease from the current price. If this prediction will come true, it means that bitcoin will have to lose another $ 1,200 from its value, exploding the crypto market further into the bear.
Investors still very bearish toward BTC | Source: Coinmarketcap
Voters also maintain a similarly bearish outlook for prices over the next few months. On a month-over-month basis, expectations for digital assets have fallen to a 17% expected loss over the next three months. At the end of May, more than 4,400 voters put the BTC price at $18,521.
But What Does Investor Sentiment Say About Bitcoin?
According to the Crypto Fear & Greed Index, investors still feel neutral when it comes to the market. But it didn’t take long to see sentiment turn negative and fear-mongering quickly, especially with the bitcoin price crash.
BTC loses $1,200 in one hour | Source: BTCUSD on TradingView.com
The thing about neutral sentiments like this is that it’s very easy to sway one side. Since prices are low, the likelihood of a drop in sentiment is higher. This can affect the price of bitcoin and other cryptocurrencies, leading to a downward trend.
However, just as the probability of a negative move is high, the premise for a positive move is also strong. If momentum picks up quickly, the price may rally sharply, making $25,000 visible again.
BTC is currently seeing important support at $22,000 but there is still plenty of resistance at $22,700 that the digital asset needs to overcome to resume its upward rally.