Bitcoin Price Outlook: Community Still Very Bearish, Expects Lower Prices
The crypto market is still reeling from Saturday’s Bitcoin price drop. The largest cryptocurrency by market capitalization has knocked most of the market off its feet after succumbing to downtrends. But it looks like this is not the end, as investors expect the digital asset to continue its decline.
Another 5% loss until the end of the month
March is still at the beginning, but it has already started with bad news for the market. This is in line with the pessimistic sentiment expressed by participants in the Coinmarketcap Price Estimates resource space. The product collects votes from community members on where they see the price of a digital asset going forward, providing a median and expected average price. For bitcoin, it is incredibly bearish as investors expect more downtrend.
With over 11,000 votes collected in the month of March, expectations turned negative for BTC. The average price expectation through the end of March came in at $21,084, which is down 5.67% from current prices. If that prediction came to pass, it would mean that bitcoin would have to lose another $1,200 of its value, further plunging the cryptocurrency market into the market.
Investors still very bearish toward BTC | Source: Coinmarketcap
Voters also maintained the same pessimistic outlook for the price in the coming months. Each month, expectations for the digital asset drop to as much as 17% of expected losses over the next three months. At the end of May, more than 4,400 voters placed the BTC price at $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 hard to see sentiment turn negative and fearful very quickly, especially as bitcoin’s price drops.
BTC loses $1,200 in one hour | Source: BTCUSD on TradingView.com
The thing about neutral sentiment like this is that it’s very easy to sway either side. As prices are low, the chances of a drop in sentiment increase. This could affect the price of bitcoin and other cryptocurrencies, resulting in further bearish trends.
However, just as the possibility of a downside move is high, the premise for an upside move is equally strong. If momentum builds quickly, prices could rise sharply as well, putting $25,000 in sight once more.
BTC is now seeing crucial support at $22,000, but there is still a lot of resistance at $22,700 that the digital asset would have to overcome to restart its rally.