You can not panic. Panic can lead to very unpleasant consequences, when carelessly to sell its assets at an unfavorable price. By investing should be approached wisely.
Yes, panic selling of your assets at unfavorable prices may lead to huge losses example when the bitfinex hacked my friends started panic selling even I suggested not to do so but they sold for the loss of some $50 to $100 with the intention of preventing further losses but bitcoin prices not slipped below $500 levels. Hope we will never face such kind of situation again.
there are two different types of selling in situations like that.
- one is when you sell while price is going down in order to buy back more at the bottom. and for this you need to predict an upcoming panic sell and act quickly to sell while price is still high. in your example it would be selling at $600
- the other is when price has already gone down and idiots who sell after the drop and when everything settles. these people are always late and panic late also. they sell (in your example) at bottom $550 and then buy at $600 when the price goes back up again because they panic again this time fear of missing out.