- 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.
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.