- If the price of BTC falls below the $22,300 range, it could drop further.
- Negative sentiment prevailed in the market, but a few metrics had a bullish bias.
Bitcoin [BTC] has been disappointing investors for several days with its sideways price action. CoinMarketCaps facts revealed that BTC did not make a profit last week as the price fell 4%. At the time of writing, BTC was trading at $22,405.25 with a market cap of over $432 billion.
Read Bitcoins [BTC] Price prediction 2023-24
The market may be in jeopardy
According to Santiment’s latest report, some analysts believe so BTCThe price may fall further in the coming days and even touch the $19,500 mark, which is concerning.
The possibility of BTC going down would arise if it fell below the $22,300 range, the band in which the price has been fluctuating lately.
📉 #Bitcoin‘s price drop a few days ago, probably attributed to the #Silvergate stock collapse, has had a hard time getting back. Our latest community insight discusses a potential $BTC support level to watch, and what to expect #altcoins. https://t.co/HMgIIuc5AD pic.twitter.com/i22qLhCLbV
— Santiment (@santimentfeed) March 6, 2023
The situation was critical, as a catastrophic 15% to 25% drop in the value of altcoins could occur if Bitcoin reached the $19,500 threshold. Thus, this caused yet another collapse of the crypto market.
An overview of the current crypto market
LunarCrush’s graphic contributed to a better understanding of the current scenario. The data showed that there was a decline in the global crypto market capitalization over the past week.
At the time of writing, it was just over $1.02 trillion. Although the market cap fell, altcoin’s market dominance increased, which can be attributed to Bitcointhe price drop. The overall bearish sentiment metric has risen significantly over the past week.
Source: Lunar Crush
Another analysis from Santiment pointed to a similar negative trend in the crypto space. The report noted that there was a spike in negative sentiment surrounding crypto across several social media platforms. Interestingly, most of the negative words on social media came from Twitter.
😨 Some freakishly high levels of negative #crypto sentiment has appeared this weekend, especially here #Twitter. It’s hard to gauge what might contribute to one of the highest levels of depression #FUD @santimentfeed ever recorded. Read our opinion! 👇https://t.co/b9Z3LGtDVr pic.twitter.com/17lZ6bF95X
— Santiment (@santimentfeed) March 5, 2023
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Caution is advised
While the possibility of a downtrend cannot be ruled out, some of the on-chain metrics seemed optimistic.
For example, BTC the supply outside the exchanges increased, while the supply on the exchanges decreased. This is generally a bullish signal, decreasing the likelihood of a price drop.
The MVRV ratio of the king coin also showed signs of recovery by rising slightly in recent days.
Source: Sentiment