The idea that people are "slowly" fleeing the market and "slowly" panic selling and that it's just an extended collapse is turning into a bad punchline. The only people left saying that are people trying to get back in at a discount.
I agree with about the oxymoronic use of 'slow' panic
... that don't make much sense ...However, I dont agree that anyone who wants to buy in at a lower level than this is trying to get in at a discount. There are a lot of assumptions in that. I know that is not exactly what you said, but similar things have been said by many people, so I am just pointing it out that it ain't necessarily so. I am sure there are people running round trying to scare people so they can buy cheaper something they believe to be worth more (I see them!). Some others amongst us just don't want to buy at these prices and see too much risk here and now.
In a bubble collapse, there are often bag holders who are wary to sell at a big loss so hang on for a while and those who attempt to double-down. I got involved in one once (on the advice of someone else. I should have known better) and watched as it took about four months for my shares to drop from 40c to 1c or so after the bust.
I don't think that's what's happening with Bitcoin at all but it's simply not necessarily the case that the deflation after a bubble burst is all that quick.
In the bubble burst from $32 to $2.50 I did not sell a single coin. Instead I've been buying increasingly more thinking: "you idiots, it's just bad press, the fundamentals are sound" and so on. A bit green behind the ears I was back then.
Of course in hindsight it would've been better to sell all and buy back in at $2.50.
On the other hand I recently talked to a guy I got to know in early 2011. He had been mining and sold everything in late 2011 only to discover bitcoin had gone to 3 digits. He now says: I won't buy, it's too expensive.
Just holding on to your coins is not the best thing to do, but not the worst thing either.
