Crypto market may witness another crash as Bitcoin [BTC] sinks under..

  • 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.

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.

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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

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