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
But they should not do such thing because thinking off on the price of bitcoin,it may crash anytime but still it do recover after that situation which means we do have still chance to earn profits but expected to wait a little bit more months or days depending on how the market moves because its really better to wait than to let your money to be reduced of because of cutting loses.
I wouldn't suggest anyone to sell any Bitcoins right now since the price of Bitcoin is going up. Since I like to watch the Altcoins go up in value when the price of Bitcoin goes up, there is a large chance that people could make more Bitcoins from participating in the price uptrend.
The only thing that I don't like about people panic selling is that they usually complain when the price of Bitcoin gets really expensive and they can't purchase Bitcoin cheaply.