Panic occurs because someone does not understand how the bitcoin journey process is in the market so that involvement in investment is only based on instinct.
In investing, it is not recommended to only use instinct because it requires analysis of the coin's journey and we are required to understand how the coin can work according to its fundamental level.
That is why bitcoin is not so risky to invest in if someone understands its journey because bitcoin has a recurring cycle that can bring corrections towards gradual recovery.
The importance of having knowledge before getting involved in investing because this can provide understanding when someone sees market conditions experiencing downward pressure on prices.
Even so, it is common to panic when the market price drops too deep, I think everyone will experience that phase but how someone responds to it depends on the knowledge they have mastered, deciding to sell because of panic is a big mistake so it takes deeper knowledge before investing, and I think for those who are old traders will not make that mistake.
Bitcoin price movements are quite fast so it is difficult to predict, it has happened since long ago and it does require extensive knowledge and also experience seeing what happened in the past to grow the belief that no matter how much the price falls in the market everything will recover, so time will tell everything, that is a belief that must be grown in my opinion.