Hi I am new here and not used to the volatility in the price
Then you better get used to it. Welcome to the world of bitcoin.
and will the market recover or is it due to selling during the festive season? 
What answer will satisfy you here? You're asking for financial advise from random people on the internet. Why would you trust anything anyone says? Some people think bitcoin will be worth tens of thousands, some think it will be worth millions. Others are convinced it's a scam/bubble/ponzi/pyramid scheme. Who is right regarding the price or bubble speculations? Nobody can tell you because nobody has a magic ball that can see into the future. Bitcoin goes up and it goes down as it always likely will but nobody can tell you by how much or how long it will take to recover and anyone who does is just speculating based on opinion or guesswork.
In other commodity trading, drops like this is indicative of a market slump and may result in panic selling. Is this a true reflection or is it normal?
Panic selling is a daily occurrence in bitcoin. People are more fickle in the cyrpto world than they are in other markets in my opinion and this is something you're just going to have to get used to.