People tend to panic when the value's are dropping. They might sell it and buy some back again when they feel the timing is right
this is in general if they bought let say 10 btc and price suddenly goes down yes they will sell just to try to save some money but this is wrong keep it price will go up eventually
Yeah you are right, think is kinda handy if let say I have 1 BTC than I will still have it. Because now 1 BTC = $300+ is still alot of money so yeah.