• Bitcoin price continues to trade within the narrow regions, displaying the possibility of dragging the price lower in the coming days
• Market sentiments are shifting from being neutral to fear, causing panic sellers to sell cryptos at a loss
• Long-term holders remain confident despite the crypto space suffering a notable pullback
Crypto Market Sentiment Returns to Fear
The recent events have caused market participants to become fearful and uncertain. The Terra ecosystem collapse back in May 2022 triggered multiple fallouts later, resulting in many tokens experiencing relief during the first few weeks of this year. However, with volume drying up at the start of Q2 2021, volatility plummeted and traders began selling cryptos at a loss. This has raised concerns that Bitcoin could plunge below $20,000.
On-Chain Data Shows Signs of Loss
Data from Santiment’s On-Chain shows that more cryptos have been bought within the underbought zone where there is very little possibility of buying. Restless addresses continue to dump on Bitcoin and other assets at a loss while altcoins are flashing underbought signals across the sector. With crypto markets trading sluggishly, fears have returned with net realized profit/loss (NUPL) undergoing a bearish pullback signaling ‚Hope/Fear‘ sentiment shift.
Long-Term Holders Remain Confident
Despite these setbacks, long-term holders remain confident in their investments as Robert Kiyosaki recently warned investors to invest in gold, silver and Bitcoin before US goes bankrupt. However, market uncertainty still remains high as traders wait for BTC’s price action moving forward.
Volatility Slumps To Lowest Levels
As global markets continue to consolidate and BTC prices show indications of plunging towards $25,000 level again, traders expect BTC prices to revisit levels below $20,000 due to an overall slump in volatility levels across the crypto space.
Conclusion
The market sentiment appears to be shifting back into fear mode due to panic sellers pushing BTC prices lower than expected levels over short periods of time. While long term holders remain optimistic about their investments going forward it remains uncertain how low BTC prices will actually go before they turn bullish once again.
