Panic selling is probably the worst thing a trader could ever do with BTC. That happens because people invest and buy more then what they can afford to lose because If they didn't buy more , they simply wouldn't care , have patience and wait whatever time It takes until It raises again.
People who bought more then what they can afford to lose are always in panic and the least drop in the price could make them panic sell and that could result into losses , however If they waited , It could've go up again.
Panic sell, it is an uncontrolled emotion. My experience when prices down I am a bit looking for a new atmosphere. Then return fresh. Set profit targets and stay disciplined. To avoid panic. hopefully.
I agree with you. Panic is the first enemy of a trader. With your emotions you need to fight in order to have success in trading. But it will come to you when you get experience in trading.