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
I think more users already sell their bitcoin that is why the value is continuous increase due to increasing of demand.
Selling bitcoin is not bad for investor if you see that you gain enough profit for your investment.
Then after selling just wait again for the right time to buy bitcoin for investment again.