As the worldwide markets continue to consolidate, the cryptocurrency space is likewise suffering a notable pullback. Althoughย while the longstanding holders appearย to show confidence, panic sellers are causing more trouble by selling cryptocurrencies at a loss. Now that Bitcoinย (BTC) shows signsย of plunging to $25,000, traders expect the price to revisit levels below $20,000.
Will the Bitcoin price fall below $20,000?ย
Sinceย then the collapse of the Terraย (LUNA) ecologicalย system back in May 2022, market participants have continued to remain in extreme fear as it triggered numerous fallouts thereafter. The cryptoย tokens witnessed a sigh of relief during the 1st few weeks of the year as the bulkย of them rallied significantly. Unfortunately, at the beginning of the Second quarter, the volume dried up, slashing the volatility to its lowest levels.
Thisย isย why, the traders who waited for a notable push towards $30,000 until now seemย to remain in a state of distrust and have begun to sell cryptocurrencies at a loss.ย
As per the data from Santiment, more cryptocurrencies have been purchased within the underbought zone, where thereย is very little likelihoodย of buying. The traders now seemย to be dull, as the restless addresses have been constantly dumping on Bitcoinย (BTC) and other assets at a loss. The MVRV model signifies that cryptoย altcoins are flashing underbought indicates across the sector.ย
Now that the cryptocurrency markets have begun a sluggish trade, the market sentiments have shifted back to โfearโ. The net discovered profit/loss (NUPL) underwent a bearish pullback, signalling the sentiments have switchedย from โOptimism/Anxietyโ to โHope/Fearโ.ย
Inย general, the market participants have onceย more developed fear as the cryptocurrency markets consolidate within narrow regions. Althoughย while the Bitcoinย (BTC) price is hovering just over $26,000, the cryptoย altcoins have been bleeding heavily. Thisย isย why, indicating a more bearish tendency couldย be imminent in the succeeding days.ย
