Of course panic sell it is psychological effect, but always is starting from mathemathic/statistic calculations or some extremely bad news for the project.
In my opinion the real price of Bitcoin is much lower than what we see on the market today, and the panic sell for Bitcoin is very real.
Psychological effect. with so many issues and drastic price drop. Many people take this action, and this is real.
Although from what I see, this is part of the market action to correction the price and restock the supply.