The crypto market may witness another crash if Bitcoin [BTC] falls under..
- If BTC’s price goes below the $22,300 area, it could fall further down.
- Negative sentiment prevailed in the market, but a few metrics had a bullish bias.
Bitcoin [BTC] has disappointed investors for quite a few days with its sideways price action. CoinMarketCap’s data revealed that BTC failed to register gains last week as its price fell by 4%. At the time of writing, BTC was trading at $22,405.25 with a market capitalization of more than $432 billion.
Read Bitcoins [BTC] Price prediction 2023-24
The market may be at risk
According to the latest report from Santiment, a few analysts think so BTCThe price may fall further in the coming days and even touch the $19,500 mark, which is worrying.
The possibility of BTC going down will appear if it falls below the $22,300 range, the band where the price has fluctuated recently.
📉 #Bitcointhe price drop a couple of days ago, probably attributed #Silvergate share collapse, has had a tough time recovering. Our latest community insight discusses a potential $BTC support level to watch, and what might be in store #altcoins. pic.twitter.com/i22qLhCLbV
— Santiment (@santimentfeed) March 6, 2023
The situation was critical, as a catastrophic decline between 15% and 25% in the value of altcoins could occur if Bitcoin reached the $19,500 threshold, thus causing another collapse of the crypto market.
An overview of the current crypto market
LunarCrush’s diagram helped to provide a better understanding of the current scenario. The data showed that there was a decrease in the global crypto market value in the last week.
At press time, it was just over $1.02 trillion. Although the market capitalization decreased, altcoins market dominance increased, which can be attributed Bitcoinits price drop. The overall bearish sentiment metric rose significantly over the past week.
Source: LunarCrush
Another analysis by Santiment pointed out a similar negative trend in the crypto space. The report mentioned that there was an increase in negative sentiment around crypto on various social media platforms. Interestingly, the majority of the negative words on social media came from Twitter.
😨 Some bizarrely high levels of negativity #crypto the sentiment has surfaced this weekend, especially here #Twitter. It is difficult to measure what can contribute to one of the highest levels of #FUD @santimentfeed ever recorded. Read our thoughts! 👇 pic.twitter.com/17lZ6bF95X
— Santiment (@santimentfeed) March 5, 2023
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Caution is advised
While the possibility of a downward trend cannot be ruled out, a few of the metrics on the chain looked optimistic.
For example, BTC offers outside exchanges registered an increase, while offers on exchanges decreased. This is generally a bullish signal that reduces the chances of prices falling.
The royal coin’s MVRV ratio also showed signs of improvement by increasing slightly in recent days.
Source: Sentiment
