Panic selling in Bitcoin is rising: It has reached a 3-year high.

Recently, the decline in Bitcoin prices has led to panic selling among investors. The increase in realized losses among short-term investors stands out as the most important indicator of this situation. On-chain data suggests that the market is approaching a possible bottoming zone.

In particular, data shared by Glassnode reveals that realized losses for short-term investors have reached a daily average of 427 million dollars over the past seven days. This marks the highest level since November 2022 and surpasses the loss volumes observed at previous major bottom points in past cycles.

Moreover, the vast majority of investors at a loss are among those who have recently entered the market. At this point, while panic selling continues, a complete capitulation scenario has not yet been observed. On-chain data indicates that such losses typically emerge before medium-term bottom regions.

According to data provided by Swissblock, the supply held at a loss by short-term investors has risen to levels consistent with the bottom levels established in past cycles. The peaks of this indicator have generally been seen before the prices transitioned to medium-term recovery phases in previous cycles. Swissblock analysts note that although stress has increased in the current situation, short-term investors have not yet resorted to mass capitulation selling.

All combined on-chain data clarifies the existing issues. The sharp increase in realized losses, the supply held at a loss reaching historic levels, and the absence of a full capitulation in the market provide clues that Bitcoin is at a critical juncture. In this case, it is important for investors to pay attention to price movements and monitor potential bottom prices.