This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
In order for BTC being the ideal medium of transaction, it is pretty bad that we have these crashes and panic sell offs. As for the sake of trading we need this because this is where most of the traders got their earnings, at the crash and dumps.
We are still at the early stage of crypto, that's why some panic sells specially for the whales are critical in order for the supply to be distributed to millions of people. If they will not sell, then there will always be a threat in the market in every moment because a single entity can make a dump and can ruin a stable price if he has a lot of coins.