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.
Not that long ago, we've seen it dropped I think @ $30,000 on the first days of this month. And if we'll base it to the one month chart, we're still in profit because a month ago, the price of bitcoin was $22,000. The same scenario just like before when bitcoin is dumping, everyone who panics will not be able to ride the train and they can't contain it because they'll regret what have they done. Well, just the whales want to take some cheap bitcoins before the skyrockets again.