Bitcoin (BTC) faces sustained selling pressure as market analysts debate whether current price levels represent a bottom formation or signal deeper declines ahead. The cryptocurrency has fallen 31% from its all-time high, with technical indicators showing the asset's longest consecutive "extreme fear" streak on record.

What Happened: Market Analysis

PlanB, creator of the Stock-to-Flow model, attributed current market dynamics to an equal split between sellers and buyers on Wednesday.

He said 50% of selling comes from original holders "traumatized by 2021," technical investors monitoring the relative strength index, and four-year cycle proponents expecting a bear market two years after the halving.

The remaining 50% consists of buyers focused on fundamentals, institutional investors, traditional finance players and banks.

PlanB characterized the situation as an "epic battle ... until sellers are out of ammo."

Joe Consorti, a crypto entrepreneur, noted historical precedents for further declines. When Bitcoin reached similar oversold levels in late 2018, the asset dropped an additional 44%, while the 2022 scenario saw a 54% decline.

Also Read: Dogecoin Falls 5% After Central Bank Announces Rate Cut With Cautious Guidance

Why It Matters: Price Outlook

Consorti suggested Bitcoin could either experience continued downward pressure or "chop around and form a bottom here," similar to patterns observed in September 2024 and April 2025. He emphasized that bottom formation requires time.

Bitcoin briefly approached $88,000 on Tuesday after reaching $85,000 on Monday, but retreated to $87,500 during Wednesday's Asian trading session due to insufficient buying pressure.

Read Next: Solana Drops Below $130 While Technical Indicators Signal Renewed Weakness