Someone who panic sell there bitcoin because of a dip is definitely making a mistake, because when there is a dip in the price of bitcoin it presents an opportunity for us to accumulate more with a different and more convenient price as well, but I most say it is more common with someone who is new into bitcoin, or probably doesn’t have a little basic knowledge to panic sell at this point in time
You are right ,most people that panic and sell their bitcoins are probably traders which maybe short term investors, when there is dip many investors view it as a chance to purchase Bitcoin at a lower price forgetting that it should be an avenue to accumulate more and hold rather than selling it,but they don’t know that Bitcoin value fluctuate rapidly,but they would be the once to regret later.
Sometimes what makes some people panic and sell their bitcoin is when they don't set a plan to follow when investing in bitcoin and they use all their money to invest in bitcoin, so when there is a dip, they will panic and sell their bitcoin to get money they will use to solve their daily expenses. But if people can set a plan that allows them to invest in bitcoin with money they will not need in the next 10 years, I think they will not panic and sell their bitcoin even when there's a dip because they plan and invest in bitcoin with money that won't stop them from solving their daily expenses.