The Saturday price decline of Bitcoin is still having an impact on the cryptocurrency industry. After succumbing to negative tendencies, the largest cryptocurrency by market size brought the bulk of the market down with it. Investors, however, anticipate that the digital asset’s drop will continue, so it appears that this is not the end.
Even though March has only just begun, the market has already received some unfavorable news. This is consistent with the pessimistic viewpoint presented by market participants in the Price Estimates section of Coinmarketcap. The program gathers community member votes on how they expect the price of a digital asset to change over time, providing a median and average predicted price. Given that investors anticipate a further downward trend, it is quite pessimistic for bitcoin.
Expectations have changed for BTC after more than 11,000 votes were cast in March. The median price projection for the end of March was $21,084, which is 5.67% less than the price at the moment. If this forecast came true, it would imply that bitcoin would have to lose an additional $1,200 in value, further pushing the cryptocurrency industry into a bear market.
The same pessimistic forecast for the price over the upcoming several months was likewise held by voters. Expectations for the digital asset decline each month, with as much as 17% losses predicted over the following three months. At the end of May, over 4,400 voters had set the cost of bitcoin at a low $18,521.
Investors’ attitudes about the market are still extremely neutral, according to the Crypto Fear & Greed Index. Yet with the recent collapse in the price of bitcoin, it is not improbable to imagine attitudes fast turning pessimistic and apprehensive.
The problem with neutral emotions like this one is that either side may easily be swayed. Prices are low, increasing the likelihood that mood will fall. The price of bitcoin and other cryptocurrencies may be impacted by this, leading to additional downtrends. But, the foundation for a good movement is equally as solid as the likelihood of a bad movement. Prices might possibly go higher if momentum picked up swiftly, bringing $25,000 back into view.
The critical support level for BTC is currently around $22,000, but there is still significant resistance at $22,700 that the digital asset would need to overcome in order to resume its upward trend.
