Many people who lack understanding of the market and prefer to believe every rumor in the decision to sell Bitcoin that they had made it up because they are afraid of pricing conditions deteriorated but notice that the price of Bitcoin could rise again in the future.
Those people surely are not patient upon seeing the price to fall and they will do the same thing as those dumping people did. Because they fear that probably the price will go further to fall and they don't know too that it can do come back on higher price so instead of just holding, they do panic selling. I'm one of them before.
Panic Selling is the biggest drawback regarding Bitcoin, maximum people whom I know dump their Bitcoin as the price goes down more as usual. They don't understand it results in more price drop. In market if value falls, it has to increase again if its popular. When People will understand, this panic might stop.
Well it is really adding and contributing for the price drop but when that happens. It also makes those traders buys a lot of bitcoin and that makes the price to pump again. So when there are panic sellers, there are also panic buyers. And they are making the trades of bitcoin balance so we don't need to panic about it.