Since lot of people are in Panic they will start to sell their BTC with loss , Market will be red more than ever before,
So this is how It work:When BTC 2.9K$ Panic will be started, Downtrend will be slowly started too. Price will be dropped to 2.5K$ - 2K$ than Next wave of Panic will be started and price will be fallen to 1K$ and it will stable at 800$.
You are just analyzing the one side of the people who will be panicking when the price drops further. What about the other people who will take this price drop as an opportunity? They will consider this drop has an off from the real value will store in as much as possible to make the maximum profit. The price drop will also allow new investors to enter the market which will in turn counter the price drop.