One reason why a lot of traders panic during a phase where the market is going through a dip is because they don't focus on long-term investments. As a someone who understands crypto currency you should understand that the market goes through fluctuations, the dip should always be expected. If you are not a newbie you wouldn't fret when this happens. Some people panic and sell before the rise comes back and they start regretting. Bitcoin has been reducing drastically, there are people who have lost millions because of this dip but they are not worried because they know the price would go up again, that's how crypto works.
Exactly Right! Most of the panic comes from people who are newbies people who started just by watching some news, and hype, sometimes big players use them as their liquidity to make profit out of their positions, sometimes New investors Knowingly or unknowingly buy at the top and when they see the pullback they don't know how to react at this kind of situation they are convinced somehow people only just make money in crypto, this force them to think irrationally, causing them to sell their positions,
Every thing in life if you wanna do it properly requires learning, Same apply for crypto market if you don't know anything you should not do anything, if you really wanna do and you are serious, you must first learn some basis and knowledge is key, that is the thing that causes panic sell most of the time.