There were, in the past, situations when bitcoin had really dramatic drops, and recovered. But still, the drops happened. We should all be mindful and learn from our mistakes.
when the situation came back like a panic selling, it will not make the prices are very down to $ 100. I'm sure when the price rises and the case of panic selling. prices will not fall by more than $ 800. price will go up because the user will be re-buy
Yes if people will see that price of bitcoin has gone down then instead of panic selling they will prefer to buy more and more coins at cheaper price which will again help the price of bitcoin to recover soon in near future.