But sometimes panic selling also provides benefits. If you're lucky maybe your panic will benefit you. Because I had panicked and sold my bitcoin. After that the price goes down! Really it is profitable for me
That is the other peoples strategy even in a small profit they sell their bitcoin or other coins, and when goes down they buy again, it doesn't matter, they are just conservative and very practical. It is one form of strategy, but panic selling has also disadvantage because you can gain more if you just patiently wait.
Panic selling should be based on some movements and analytical considerations, the thing that most often comes from daily traders, or people who not consider it a personal asset will tend to emotionally dilute bitcoin as soon as possible. Bitcoin is not like altcoin that can be very falling, if it's panic then just sell some as needed.