Panic selling do only happens commonly when price of bitcoin sudden dips down again and for those newbie holder do panic sell in able to cut loss but in reality they lose always on negative thats why theres no point on panic selling.Instead of doing it better to hold it off than to sell just to cut loses,knowing bitcoin it do really drops it price but still it recovers.
I think not just at the price down course, panic selling happens. But when prices go up high though. Most users will panic selling so they can get a big profit