Bitcoin Price Outlook: Community remains very bearish, expect lower prices
The crypto market is still reeling after Bitcoin’s price drop on Saturday. The largest cryptocurrency by market capitalization took the majority of the market 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
Mars is still in its early days, but it has already started 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, and outputs a median and an average expected price. For bitcoin, it is incredibly bearish as investors expect more downward trend.
With over 11,000 votes collected for the month of March, expectations have turned negative for BTC. The median price expectation at the end of March came out to $21,084, representing a decrease of 5.67% from today’s prices. If this prediction were to come true, it would mean that bitcoin would have to lose another $1,200 from its value, pushing the crypto market further into the bear market.
Investors still very bearish toward BTC | Source: Coinmarketcap
Voters also maintained the same bearish outlook for the price over the next couple of months. Each month, expectations for the digital asset drop lower to as high as 17% expected loss over the next three months. By the end of May, more than 4,400 voters set the price of BTC to a low of $18,521.
But what does investor sentiment say about Bitcoin?
According to the Crypto Fear & Greed Index, investors still feel very neutral when it comes to the market. But it’s not long to see sentiment turn negative and awful very quickly, especially with the bitcoin price crash.
BTC loses $1,200 in one hour | Source: BTCUSD on TradingView.com
The thing about neutral emotions like this is that it’s pretty easy to sway both sides. Since prices are low, the chances of a decline in sentiment become greater. This could affect the price of bitcoin and other cryptocurrencies, resulting in further downtrends.
But just as the possibility of a negative movement is great, the premises for a positive movement are equally strong. If momentum were to pick up quickly, prices could also rise 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 needs to beat to restart its upward rally.
