Bitcoin is currently facing significant selling pressure that exceeds buying interest, keeping its value subdued. Analyst and founder of the Stock-to-Flow model, PlanB, raised the question, “Why is Bitcoin not pumping?” He attributes the market’s reluctance to a division: half of the selling is coming from ‘OGs’ traumatized by the 2021 trends and technical traders analyzing the Relative Strength Index (RSI), while the other half comprises new investments driven by institutional players and fundamentals.

It is an epic battle … until sellers are out of ammo.
(Translation: The struggle continues until the sellers exhaust themselves).

Bears Are Winning the Fight

The current stance of the market shows that the bears hold the upper hand. Bitcoin’s price has decreased by approximately 31% from its peak, a trend that’s not uncommon in the cryptocurrency world.

Bitcoin can definitely go lower from here, but it’s not my base case, says crypto entrepreneur Joe Consorti.
(Translation: The asset could decline further, but I don’t anticipate it.)

He reflected on past downturns, noting significant drops in late 2018 and 2022, highlighting the severity of potential market corrections.

If a proper bear market is underway, things can get much worse.
(Translation: Conditions might deteriorate significantly if we are indeed in a bear market.)

Nevertheless, Consorti suggested that Bitcoin might stabilize here as it did in previous years, although he cautioned that forming a solid bottom may take time.

Meanwhile, Mike McGlone from Bloomberg Intelligence presented a bearish outlook, predicting Bitcoin’s price could decrease to around $10,000. He noted that failing to hold above $15,000 could signify dire consequences for the entire crypto market.

As it stands, Bitcoin is undergoing its longest recorded stretch of ‘extreme fear’ according to the Fear & Greed Index, impacting market sentiments.

Bitcoin Price Observations

Bitcoin has shown slight recovery from a recent low of $85,000, reaching nearly $88,000 before succumbing to a lack of buying momentum, sliding back to $87,500.

Over the past month, the price has remained relatively stable, following significant drops in October and November. This scenario may indicate the establishment of a price floor or merely a fleeting moment before another downturn.