In my experience, The panic selling is for not experience here in bitcoin or didn't know the market speculation. For me if the price drop down I will wait because I know that bitcoin price will pump again and for every year that is happening dump once pump twice. If you trust bitcoin you will not do the panic selling.
You could actually take the advantage of this panic selling which in other words is know as trading. I didn't really care of panic selling much as I even knew that the price will increase soon , I had taken advantage of panic selling only once and made a profit of 200$. But mostly panic selling occurs in china.
That is what a trader should think. Traders don't care for the panics that might be happening in the market because somehow they know that it will calm down and the price will be back at the normal. We can take advantage of that panic selling to get those dumps and be ready for the pump later, It is easy because a lot of us already know what to do in trading and that is buy low sell high so it's easy for us to make profit in those panic selling scenarios.
Not always it really sounds easy to trade the way you told but actually trading is really hard and sometimes we can even lose our money. I normally don't like panic selling because i sometimes get scared that what if the price doesn't grow again. I know that's nonsense but anything can happen.
That's normal to be scared as when the price is falling hard it's not good to see but you need to stay strong focus on the future, crisis may happen from time to time depending on the market situation but bitcoin does not fail us. When it falls, the next thing will happen is will rise, see what happen now, we are back in the very nice price again and I'm confident after the panic selling, it will be a continuous success.