Many people lost their portfolio because of lack of market structure. Not every dip or rally you jump into. These is my view why many lost during this Bitcoin decline.
Many actually lose if there's a correction to happen. But you will not lose until you sell. For a holder, it's normal to see a correction like this but you have to analyze that if you've been in the market, you're still profitable.
You're right. Especially, now with this correct when BTC has gone under 30K has made many people panic- all I have seen all day were huge and constant sell orders. This is where everybody is thinking that this is the end, throwing everybody else in the same predicament.