Long term investment is of course profitable, all of the investors well know that but I think mostly panic seller are big investors because their risk is also big,
when market is going to start a big correction then those are start selling their coins in losses. Bitcoin is the great investment, but need to hold it very long term.
Why do you even consider big investors like that when a price correction in the market occurs? In fact, there are also many investors who are able to survive in correction conditions by never panicking about price correction conditions in the market, especially if they already know that long-term investment will be much more profitable than feeling panicked just because of a momentary price drop.
I actually don't highlight the actions of big investors in certain conditions such as corrections, because I look more at traders where they are actually the ones who feel panic faster when market conditions start to change because they are not investors but just ordinary people who are looking for a little profit every day.
If they are very experienced investors, I am sure they will not do that, but if they are new investors, then they can do it. In this context we are talking about big investors, so they certainly have a lot of capital.
I think most of the investors who sell when there is a correction are investors who are not very experienced or those who invest with small capital or maybe even use the money for other needs.
So in this case I agree when you say that those who do that are ordinary investors who are looking for a little profit every day.