If I have managed to save enough bitcoins and if I find myself in desperate need of money then I will prefer to sell some portion of my coins even at the loss as it can be recovered again in future by earning them again.
You are not in a desperate need of money because you have bitcoins that you can use when you need money, a person within in a situation where he is in desperate need of money is he has no money at all or cannot afford to solve the problem with his money in his ownership.Exactly, if you are desperately in need, it means you have no cash on hand and it means that what was left to you are your assets that can be liquidate... So you have no choice but to use those and turn it to cash "quickly"... But anyway, I still prefer to make a loan or pawn some of my valuable things or just sell it...
Yeah and if we need money quick then selling things can only help as it will give you cash in hands instantly but you may need to compromise with the price by selling at lower price.