- If BTC’s price goes below the $22,300 range, it can drop further down.
- Negative sentiments prevailed in the market but a few metrics had a bullish bias.
Bitcoin [BTC] has been disappointing investors for quite a few days with its sideways price action. CoinMarketCap’s data revealed that BTC failed to register gains last week as its price dropped by 4%. At the time of writing, BTC was trading at $22,405.25 with a market capitalization of more than $432 billion.
Read Bitcoin’s [BTC] Price Prediction 2023-24
The market might be in danger
As per the latest report by Santiment, a few analysts believe that BTC’s price can drop further in the coming days and even touch the $19,500 mark, which is concerning.
The possibility of BTC going down would emerge if it fell below the $22,300 range, the band in which the price has been fluctuating of late.
📉 #Bitcoin‘s price drop a couple days ago, likely attributed to the #Silvergate share collapse, has had a tough time rebounding back. Our latest community insight discusses a potential $BTC support level to watch, and what could be in store for #altcoins. https://t.co/HMgIIuc5AD pic.twitter.com/i22qLhCLbV
— Santiment (@santimentfeed) March 6, 2023
The situation was critical, as a catastrophic decrease between 15% to 25% in the value of altcoins might occur if Bitcoin were to reach the $19,500 threshold. Thus, causing yet another collapse of the crypto market.
An overview of the current crypto market
LunarCrush’s chart helped provide a better understanding of the current scenario. The data showed that there was a decline in the global crypto market capitalization over the last week.
At press time, it was just over $1.02 trillion. Though the market cap went down, altcoin’s market dominance increased, which can be attributed to Bitcoin’s price decline. The total bearish sentiment metric went up significantly during the past week.
![](https://ambcrypto.com/wp-content/uploads/2023/03/LunarCrush-1.jpg)
Source: LunarCrush
Another analysis from Santiment pointed out a similar negative trend in the crypto space. The report mentioned that there was a spike in negative sentiment around crypto on various social media platforms. Interestingly, the majority of the negative words on social media were coming from Twitter.
😨 Some bizarrely high levels of negative #crypto sentiment has appeared this weekend, particularly here on #Twitter. It’s hard to gauge what may be contributing to one of the highest levels of #FUD @santimentfeed has ever recorded. Read our thoughts! 👇https://t.co/b9Z3LGtDVr pic.twitter.com/17lZ6bF95X
— Santiment (@santimentfeed) March 5, 2023
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Caution is advised
While the possibility of a downtrend can’t be ruled out, a few of the on-chain metrics looked optimistic.
For instance, BTC supply outside of exchanges registered an uptick while supply on exchanges declined. This in general is a bullish signal, decreasing the chances of a price plummet.
The king coin’s MVRV Ratio also showed signs of recovery by increasing slightly in the last few days.
![](https://ambcrypto.com/wp-content/uploads/2023/03/Bitcoin-BTC-16.27.54-06-Mar-2023.png)
Source: Santiment