Crypto Market Sentiment: Fear-Panic Selling Drags Bitcoin Price Down

Crypto Market Sentiment: Fear-Panic Selling Drags Bitcoin Price Down

As the crypto market experiences a pullback and Bitcoin’s price approaches $25,000, traders fear it may drop below $20,000, with altcoins also flashing underbought signals and market sentiments shifting to ‘fear’.

As the worldwide markets continue to consolidate, the cryptocurrency space is likewise suffering a notable pullback. Although while the longstanding holders appear to show confidence, panic sellers are causing more trouble by selling cryptocurrencies at a loss. Now that Bitcoin (BTC) shows signs of plunging to $25,000, traders expect the price to revisit levels below $20,000.

Will the Bitcoin price fall below $20,000? 

Since then the collapse of the Terra (LUNA) ecological system back in May 2022, market participants have continued to remain in extreme fear as it triggered numerous fallouts thereafter. The crypto tokens witnessed a sigh of relief during the 1st few weeks of the year as the bulk of them rallied significantly. Unfortunately, at the beginning of the Second quarter, the volume dried up, slashing the volatility to its lowest levels.

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This is why, the traders who waited for a notable push towards $30,000 until now seem to remain in a state of distrust and have begun to sell cryptocurrencies at a loss. 

As per the data from Santiment, more cryptocurrencies have been purchased within the underbought zone, where there is very little likelihood of buying. The traders now seem to be dull, as the restless addresses have been constantly dumping on Bitcoin (BTC) and other assets at a loss. The MVRV model signifies that crypto altcoins are flashing underbought indicates across the sector. 

Now that the cryptocurrency markets have begun a sluggish trade, the market sentiments have shifted back to ‘fear’. The net discovered profit/loss (NUPL) underwent a bearish pullback, signalling the sentiments have switched from ‘Optimism/Anxiety’ to ‘Hope/Fear’. 

Crypto Market Sentiment: Fear-Panic Selling Drags Bitcoin Price Down

In general, the market participants have once more developed fear as the cryptocurrency markets consolidate within narrow regions. Although while the Bitcoin (BTC) price is hovering just over $26,000, the crypto altcoins have been bleeding heavily. This is why, indicating a more bearish tendency could be imminent in the succeeding days. 


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