I think it's mostly fear. People don't want to sell but they are afraid of losing value and each time Bitcoin closes to the point where they bought thay sell to save themselves. The only thing that is holding Bitcoin above 6000 is the ETF decision. People are greedy and fearful at the same time and now greed is fired up y that small spark of ETF and the rest is fear.
When the price is at the point wherein I bought it, I would not immediately sell it but I would set a percentage loss and when that price is reach I would just sell it and wait for the time when the price is looking good for buying when the volume is building up and it seems like price is consolidating. Many manipulators sometimes sell off their coins so that stop losses will be triggered and they can buy more coins.
You're right but still there will be a point somewhere right below that person's buy in point when they will sell. If the price keeps falling in a bear market and people start to sell with a 5% loss there will still be the same wave of panic sellers.
There's not much difference between 1000 people selling at 6000 or the same number selling at 5900 because they had a stop loss set below their buy point. A panic is a panic.