As global markets continue to consolidate, the crypto space is also suffering a significant drop. While long-term holders appear to be showing confidence, panic sellers are adding to the anger by selling cryptos at a loss. Now that there are signs of Bitcoin plunging to $25,000, traders are expecting the price to revisit levels below $20,000.
Will BTC Price Drop Below $20,000?
Since the collapse of the Terra ecosystem in May 2022, market participants continue to be in great fear as it later triggered multiple impacts. Tokens experienced a sigh of relief in the first few weeks of the year as most of them rallied significantly. Unfortunately, early in the second quarter, volume dried up and volatility fell to its lowest point.
Therefore, traders who have been waiting for a significant surge towards $30,000 so far seem to remain in a state of distrust and have started selling cryptos at a loss.
analysis
According to Santiment data 
holy on chain 
, more cryptos were bought within the underbought zone where there is very little buying opportunity. Traders now appear to be bored as the troubled addresses have been constantly dumping bitcoin and other assets at a loss. The MVRV model indicates that altcoins are sending underbuy signals across the sector.
Now that crypto markets have started sluggish trading, market sentiment has shifted back towards “fear”. Net realized gain/loss (NUPL) saw a bearish decline, suggesting sentiment has shifted from optimism/fear to hope/fear.
Also read: Robert Kiyosaki warns: “US will go bankrupt and invest in gold, silver and bitcoin”
BTC price analysis
Overall, market participants have renewed fear as crypto markets consolidate in tight regions. While bitcoin (BTC) price hovers just above $26,000, altcoins have suffered badly. Therefore, a more bearish trend could be imminent in the coming days.
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