You would get a clearer answer if you specify the amount of bitcoin which are going to be sold. "Huge" can be anywhere from 1000BTC to 1MBTC. The former won't even move the market while the latter will likely result in a substantial drop on the price.
I totally agree with you that if there are no substantial amount of bitcoins sold in the market like the amount you have mentioned then it cannot be called panic selling. Why would there be panic selling in the first place, it is the most unlikely thing to do for a bitcoin stockholder since bitcoin will not have a price deflation.
There is no panic selling recently. that is a normal profit taking. The price rose 60% in just a few days.