Panic selling is probably the worst thing a trader could ever do with BTC. That happens because people invest and buy more then what they can afford to lose because If they didn't buy more , they simply wouldn't care , have patience and wait whatever time It takes until It raises again.
People who bought more then what they can afford to lose are always in panic and the least drop in the price could make them panic sell and that could result into losses , however If they waited , It could've go up again.
That's right. Also, bitcoin is such a big value asset that you would actually need a big capital to invest in it, so now, since most assets, including Bitcoin, is not in a good state. I would certainly be a loss if you would sell it now without planning ahead. Also, being a trader, you should go by trades with too much emotions with them. This market can't be gauged with just gut feeling, everything should be calculated, planned and researched upon, so that it wouldn't amount to a loss.