Some newbies without proper knowledge of Bitcoin always have this fear when there's a dip in Bitcoin but going through the history of Bitcoin growth will help them Break free from such fear, some people also fear when there's a dip in Bitcoin because they have already inculcated this we are in them that Bitcoin will one day fall and never rise again so when ever there's a dip they fear of it not rising again.
No one knows what the future holds for Bitcoin and that is why it is advised to always use ones Discretionary income in Bitcoin investment if any negative thing happens in the future in Bitcoin people that will be more affected are those who are not using there discretionary income to invest no one is praying for anything negative but let's all be guarded.
You are absolutely correct and not only newbie get scared when there's a dip even some investors usually get scared too and the reason why these investors get scared is not because they don't understand how Bitcoin works but because they don't believe in Bitcoin that much, they believe it will definitely messed up one day just like you said and this mindset can cause or make an investor not to have a good investment or achieve a desired goal. Even if we are not sure about Bitcoin future but at least it potential I mean how long it has stayed and it initial value to the current value should be enough for us to embrace and keep (accumulate).
Not only newbies get's scared, investors who also get's scared are those who do not understand the market, some of them choose to invest under the option of selling suddenly as soon as they make profits from their start up funds. People who do this, are traders who are interested in quick profits and unbothered about the potentials of Bitcoin in the future.
Investors who understands everything about Bitcoin volatility will not have to be worried, the dip is part of the market, most investors likely appreciates the dip more than they do for the bullish part of the market, all because they are opportune to buy Bitcoin at a much lower price compared to when the market becomes bullish. Most especially those who choose to DCA or rather buy the dip are more confident when the price begins to go below and they even become less worried, knowing fully well that it is just a phase of the market and sooner will get to experience another phase which is the bullish season.