the only reason why bitcoin price dropped during the worldwide panic was that the bull market hadn't started yet and price was stuck behind a rather strong resistance and couldn't break it. so the tendency to drop was already there and whales took advantage along side the panic sell.
if another similar crash happens during the bull market it won't affect bitcoin at all. it will just lead to some whales losing a huge amount of money trying to go against the market just like what happened during 2017 and bankrupt many whales.
What you are saying is quite reasonable but I am not so sure about it because, after all, bitcoin today is conceived as an asset by most investors. A volatile, high-risk asset. Not a currencý, not the best store of value, but an asset.
What happened in March is that investors, faced with the catastrophe that was coming, sold all kinds of assets en masse
to obtain liquidity. That is why everything went down, not only the stock market and bitcoin, but also gold.
And that can also happen again, no matter what the tendency is.
Astute observation regarding the liquidity vacuum that emerged in March. I totally agree.
However, with the NASDAQ and S&P 500 trading at all-time highs, with gold trading at all-time highs, I believe the market has already priced in the COVID-19 fallout and is indicating it trusts the Fed to provide a floor for the market. It smells like a new bull market, as sickening as that seems given the underlying fundamental context.
That floor will apply to BTC as well, since this question is really about overall investor risk tolerance across all markets. Sharp corrections will occur, but I think pooya87 is correct that they will be reversed relatively quickly and will show in hindsight as bear traps.