Bitcoin Panic Selling: Why It’s a Mistake
Bitcoin’s Sharp Correction and Fearful Sell-Off
Bitcoin Panic Selling intensified this week after BTC lost the crucial $90K mark. The price fell about 14% in less than three days, triggering a wave of fear and speculation. Some analysts call it the start of a bear market, while others see it as a normal correction phase in a broader bull run.
Bitcoin Price Drawdown after Price Discovery | Source: Ki Young Ju on X
CryptoQuant CEO Ki Young Ju highlights that 30% pullbacks are common in bull cycles, reminding investors of how BTC bounced back after a 53% drop in 2021. He warns that selling now out of panic is a classic newbie error. Ju advises having a clear plan and avoiding emotional trades.
With Bitcoin hovering under $90K, the next days are critical. If BTC recovers above $90K soon, confidence may return. Otherwise, deeper demand zones near $82K–$84K could come into play. Many experts say short-term volatility shouldn’t cloud the long-term bullish outlook, but timing remains uncertain.
Market Correction Phase: Key Insights
Bitcoin just saw its largest correction this year, fueling talk of a bear market. However, top analysts are waiting for confirmation levels—whether BTC holds below $90K or reclaims $95K to signal a recovery rally.
Ki Young Ju points out that emotional trading often leads investors to buy high and sell low. This is why panic selling is typically unwise. He notes that, historically, such dips are normal in a bull run. If you’re panic selling now, you may miss the potential next leg up.
Ultimately, the next few days will determine if Bitcoin stabilizes. As the market remains volatile, some traders are bracing for deeper corrections, while others see a prime opportunity to buy. Caution and a well-thought-out strategy are key in navigating these swings.
BTC Testing a Key Demand Zone
BTC is currently around $86,400, resting just above the 200-day Exponential Moving Average (EMA) and close to the 200-day Moving Average (MA)—both crucial supports. A strong bounce here might open the door for a run back above $90K.
BTC testing crucial demand | Source: BTCUSDT chart on TradingView
Historically, the 200-day MA often acts as a turning point. If bulls defend this level, consolidation may precede another push higher. If it breaks, $82K–$84K becomes the next target. This pivot could define whether BTC quickly resumes an uptrend or needs a longer consolidation period.
Short-term traders will watch if BTC retests $90K soon. Failure to do so might signal more downside, while regaining that zone would restore some bullish momentum. Overall, the market remains watchful, with participants evaluating when to re-enter or reduce risk in a turbulent environment.
Conclusion: Avoid Emotional Trading
Bitcoin Panic Selling is often driven by fear when prices plunge. CryptoQuant’s Ki Young Ju suggests that a sharp correction doesn’t necessarily mark the end of a bull run—BTC has recovered from bigger drawdowns before.
The best approach is to rely on a clear plan rather than react impulsively to sudden drops. If you chase price pumps or bail during dips, you risk locking in losses. Historical patterns hint that these corrections can be a healthy reset in an otherwise rising market.
Stay alert to how BTC behaves around key supports like the 200-day MA. Keep an eye on $90K as a potential reclaim point. Seasoned investors often interpret this phase as normal volatility in a long-term rally. Ultimately, understanding market cycles and avoiding panic can help you navigate the current storm.
Featured Image: Created by Dall-E
Charts: Courtesy of TradingView
BTC testing crucial demand | Source: BTCUSDT chart on TradingView
If BTC stabilizes at these levels, the next major step in reclaiming bullish momentum would be pushing above the $90K level. However, the market remains highly volatile, and this process could take time before the next major rally takes off. Investors are closely monitoring price action to see if Bitcoin can sustain a recovery phase or if another wave of selling pressure will push it into lower demand zones.
Historically, when Bitcoin tests the 200-day MA, it often leads to a period of consolidation before a significant move. If bulls manage to reclaim the $90K mark and hold it as support, this would signal a potential uptrend resumption. However, failure to hold current levels could result in further declines, with $82K–$84K as the next key demand zone.
For now, traders are waiting to see whether Bitcoin can defend its current levels or if a longer consolidation phase is needed before a breakout occurs.
Featured image from Dall-E, chart from TradingView
