Bitcoin (BTC) continues to face sustained selling pressure, prompting analysts to debate whether current price levels signal a potential bottom or point toward deeper losses. The cryptocurrency has dropped 31% from its all-time high, while technical indicators highlight the longest consecutive “extreme fear” streak in BTC’s history.
Market Analysis
PlanB, creator of the Stock-to-Flow model, attributed the current market dynamics to a roughly even split between sellers and buyers. According to him, half of the selling comes from original holders “traumatized by 2021,” technical traders monitoring the relative strength index, and four-year cycle proponents anticipating a bear market two years post-halving.
The remaining 50% consists of buyers focusing on fundamentals, institutional investors, and traditional finance players. PlanB described the market as an “epic battle … until sellers are out of ammo.”
Crypto entrepreneur Joe Consorti pointed to historical precedents for further declines. In late 2018, when Bitcoin reached similar oversold conditions, the asset dropped an additional 44%, while a similar scenario in 2022 resulted in a 54% decline.
Price Outlook
Consorti noted that Bitcoin could either face continued downward pressure or consolidate to form a bottom, resembling patterns observed in September 2024 and April 2025. He stressed that forming a bottom requires time.
BTC briefly approached $88,000 on Tuesday after hitting $85,000 on Monday but retreated to $87,500 during Wednesday’s Asian session due to limited buying pressure.
Current market metrics suggest caution, as echoes of past pre-decline conditions indicate that further volatility could be ahead.
