People are afraid of market dump only when they have lack of knowledge and they are unable to know about the market conditions. Market dump occurs so many times in just a single month so after every loss it recovers back but this reality is not understand by new commers.
Instead of having fear about market dump if people think positive then they can minimize their fear and will not be effected by market alterations. We are hearing from years that market goes dump and after months it recovers back but still people don't believe this thing and put negative thoughts in their heart and also share it with others.
Cryptocurrency in general happens to be very volatile, especially Bitcoin, which is the main center of attraction. When the market experiences a downtrend for a while, it's a general situation for everyone to be less happy, though it is an opportunity to accumulate more coins. But I have come to realize that those who get scared during times like this are traders and newcomers, as you've mentioned. Traders who are in for quick profit are always tense as they fear that they've missed a huge opportunity of making profits.
Situations like this don't seem to pose too many problems to long-term investors because they already know that they will always get their funds and profit back sometime in the future. Downtrends and uptrends are basically what keep the market in good shape. Life is never a win-win situation, we win some and lose some.
That's right, it is normal for those who are new to Bitcoin and buy coins at high prices but after that the price collapses, of course it will make them panic and feel depressed. At least they have to enter the cryptocurrency market when the bearish season occurs.
I also believe that when newcomers enter the system, they fail to prepare their minds for the worst due to the excitement of joining the crypto community. Though no one plans to lose their money, the volatility and widespread manipulation can lead to significant losses, especially during a bearish season. But as you've said, the bearish season is a perfect time to join the train.