**Bitcoin Panic Selling Deepens as Key Indicator Flashes Local Bottom Signs: Price Rebound Imminent?**

Bitcoin short-term holders have recorded steep losses—near 13 percent—amid intense selling pressure concentrated on recent buyers. According to data from CryptoQuant, new investor cohorts were responsible for panic moves after Bitcoin’s sharp drop to the $98,401 level. Technical analysis by ColinTCrypto revealed a “death cross” pattern as Bitcoin touched the lower boundary of a megaphone formation, hinting at significant market stress.

As of today, CoinGecko reported Bitcoin trading at $95,680, down from its recent $98,401 low, with trading volume rising during the ongoing market pullback. The increased selling primarily affected investors who entered the market within the last six months, pointing to a period of concentrated pain for short-term holders.

### Capitulation Trends Accelerate Among Short-Term Holders

CryptoQuant’s latest data spotlights notable losses among new investors during the correction:

– **Past week buyers:** Faced a 3.46% loss.
– **Past month entrants:** Endured a 7.71% decline.
– **Six-month short-term holders:** Absorbed the largest hit at 12.79%.

CryptoQuant attributes this decline to mounting pressure on traders highly sensitive to short-term price movements. The current phase is described as a market flush, which removes highly reactive traders—a recurring feature during sharp corrections. Realized losses of this magnitude often mark peak stress within the short-term holder segment.

Importantly, the realized loss metric for these cohorts is now approaching levels that have historically coincided with local bottoms in prior pullbacks. As panic selling deepens, long-term holders appear to be absorbing supply from short-term traders, suggesting a shift in market positioning.

### Technical Signals Add a New Layer to Bitcoin’s Mid-November Move

Market observer ColinTCrypto added technical context, noting the emergence of a death cross as Bitcoin’s price action hit the lower megaphone boundary. This technical pattern was anticipated for mid-November and has previously aligned with short-term upward moves. ColinTCrypto believes the death cross could act as a rebound marker based on prior cycles, though he emphasizes that his comments speak only to near-term behavior and do not imply long-term forecasts.

He also referenced the Federal Reserve’s upcoming plan to end quantitative tightening on December 1, a potential catalyst to watch in the coming weeks.

### Market Activity and Outlook

CoinGecko data highlights the scale of Bitcoin’s recent movements:

– **24-hour price drop:** 1.18%
– **Seven-day decline:** 6.47%
– **Trading volume:** Surpassing $95.9 billion during this correction phase

This heightened activity underscores the stress among short-term holders. CryptoQuant’s analysis suggests that current realized loss levels may be indicative of a fading panic and could mark a local bottom—historically a precursor to price stabilization and potential rebound.

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*Published on Blockonomi*
https://bitcoinethereumnews.com/bitcoin/bitcoin-panic-selling-deepens-as-key-indicator-flashes-local-bottom-signs-price-rebound-imminent/