That was your own analysis based on what you have noticed, but the question is, is that really what happened? There is no source where we can see the actual feeling of traders right now. You have to decide on what to do based on what you see on the market and not because of your speculations about how traders are reacting today.
Definitely you need to trade to recover your losses. But don't have that mindset as recovering the losses might result into much worst scenario.
Practice trades win or lose. That's how you will become a better trader soon.