Bitcoin News: Bitcoin Panic Selling Peaks as $80,000 Becomes a Key Accumulation Zone, According to Analyst

On-chain data suggests that panic sentiment in Bitcoin markets may have peaked, with increasing signs of bottom-hunting activity near the $80,000 level.Key Takeaways:Declining realized losses: The second major correction on March 10 resulted in fewer realized losses than the first drop on February 28, despite a deeper price decline.Investor accumulation at $80K: On-chain data from Coinbase shows an increase in active buy orders between March 7 and March 13, signalling strong U.S. investor interest.Market sentiment stabilizing: While Bitcoin's price has yet to reflect this shift, on-chain data suggests panic selling has subsided.Fed decision could trigger a rebound: The Federal Reserve’s interest rate announcement on March 20 and Jerome Powell’s speech may serve as a market catalyst.On-Chain Data Signals a Market ShiftAccording to Murphy, an on-chain data analyst, realized losses—including both on-chain losses and those transferred to exchanges—dropped significantly during the second sell-off wave on March 10. This indicates that despite a lower BTC price, fewer traders were selling at a loss, suggesting that panic-driven exits may have exhausted themselves.Meanwhile, buying activity on Coinbase surged during the March 7-13 correction, pointing to strong demand from U.S. investors at the $80,000 level.“The data is ahead of the price and reflects short-term market expectations, but the price has yet to clearly respond. The market may be waiting for a trigger,” Murphy explained.Federal Reserve Decision Could Spark a ReboundThe next major macroeconomic event is the Federal Reserve’s interest rate decision on March 20 at 2:00 AM UTC, followed by Chair Jerome Powell’s remarks.Market participants believe that as long as the Fed's stance is not more hawkish than expected, conditions are in place for a short-term Bitcoin rebound. However, whether this bounce will be weak or strong depends on how the market interprets the Fed's outlook.While BTC remains in a consolidation phase, on-chain accumulation suggests investors are positioning for a potential recovery.