Sometimes people don't panic sell, they just "sell" via a clear strategy. They sell at resistance and (at least try to) buy at support. I'm not a trader by any stretch but I've been employing my simple strategy for years, not with any considerable amount but I've stacked a much higher amount and your average DCA pleb.

I'd argue that many people "panic buy" only to be shaken out when they experience a 30% haircut on the way down.

There are simply buyers and sellers.