Most people that usually use this panic methods are just whales, they want to crumble the price so that they can get the opportunity to buy at lower price again which they usually do succeed, and after they have bought at lower prices, they tend to pump the coin again for those that will fall for FOMO, so that there can be rush for it to be purchased, thereby leading to an increase for the whales to gain some profit, but I think as a knowledgeable investor, we ought to have really known this and not to be too quick in taking actions without thoroughly studying the market first.
And the wise reaction is to remain reasonable despite what is happening to the market. Reacting with emotion will only make the picture cloudy and will end up with a bad decision. The problem is that many Bitcoin owners panic when there is a sudden fall. And then they will listen, read, and even believe in the conspiracies created almost immediately following unusual occurrences like that. Which are nothing but hollow stories. By the time there is a recovery, news will shift into a positive tone, and many people are now feeling that there is an upcoming bull run and they will develop fear within themselves and will then buy back with a more expensive price. This is the reason why many are becoming sheep.