One of the major thing an investor should know especially the newbies coming into cryptocurrency is to have a strong and prepared mindset that when bitcoin price dips, it should be an opportunity for us to buy more and not to panic into selling off my portfolios. A newbie that is able to conquer this in their mind, they will never have problems with the dip. 1BTC will always be 1BTC unless you take a portion of it and sells out that its value will reduce. A projected profit target should be reached before you sell off your bitcoin.Many dips have come and gone and bitcoin always bounce back. The enthusiasm in bitcoin has made it an asset that many people have believe in to always bounce back even when the future of it is not certain by anyone. Owning bitcoin for several years is not a guarantee that they can be able to withstand the market conditions, if their mind is not prepared for it, they’ll always feel bad and have a reason to sell some part of it off.
The only nest time to sell part of your bitcoin is when you have already have more than enough Bitcoin in your portfolio that you might no need to buy more but just to hodli. And that does not mean that you should sell all your bitcoin because you have gotten the profit that you need from your bitcoin portfolio but only sell little portion that will not affect the size of your bitcoin portfolio at all, so that you can continue hodli your bitcoin for more compounding profit in future.
Well, it depends on the individual or institutions choice, someone can have more than enough Bitcoin in their portfolio and decide to diversify to other good investment option, it's a nice idea and they won't really be affected by their choice since they've already accumulated enough Bitcoin and they could still buy back when an opportunity comes or when they make profit from the new investment. But if you noticed, most institutions have refused to sale even when they're holding enough and are accumulating more instead. For instance, according to JP Morgan, institutions accumulated more while retails sold aggressively, they sold about $1b while institutions accumulated up to $14b, you can see that even with the rate of the recent dip, top holders accumulated more while lots of small and medium scale holders panic sold, that's the more reason I think new crypto investors are more prone to panic sale than old investors.