You're right about a lot of people being gun shy of buying BTC or most alts; I think it's because there's been a huge influx of new people entering the crypto sphere since around November and they came in thinking it was a magical money multiplier, then when this dip hit, as was inevitable, it shook them, especially the ones that didn't follow the advice of "only invest what you can lose".

Really though, if people want to mitigate their losses the move to make is to double down; if you bought 1 x coin at 1.00 and now it's .75 you need it to go up .25 to break even. If you buy 2 more you'll be at 2.50 invested, 2.25 total value, and so you only need it to go up .08 to break even. That's ignoring the fact that you're fine needing it to go up .25 anyways; buy the dips, that's what I'd be doing right now if I had money.