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.
Panic is normal but it doesnt mean that you would really be that making yourself that always be that trying out to make mistakes all over again and again. Its really that important that you do really know on what you are dealing on with on which you wont really be just making yourself that impulsive and not to make any further actions on which it will really be causing up that further loses. We do know that it will be much more dangerous if you do really let yourself being that being too optimistic towards trading on which you are really that believing that you can make money all the time.
Panic selling do always occur into those who are really just that new into this market and this is really that normal but once you do able to get that sufficient experience then you can be able to make out some adjustments accordingly and able to learn up.