Can insomnia goes in circles?

I have had insomnia for the last 3 years almost. I was bad, then slowly slowly improved, then much much better and then to being not bad but worst. 

Bad-> unable to sleep without meds. Panic attacks, fears, unable to stay put. Anxiety, palpitations etc

improve-> with strong meds managed to sleep

Better-> reduced the meds to min and managed to sleep

Worst -> All the things i have before in the bad state only worst level and with meds not helping

Is that normal?

Also does anyone suggests if it is correct thing to stop taking the meds cold turkey.

No. You and I (and several others) have already covered this in another discussion on these boards.

If I recall correctly you've been on quite high doses of sleeping meds for at least three years, so you'll now be totally dependent on them. In these circumstances, going cold turkey will cause horrendous insomnia and anxiety.

You need to discuss all this with your doctor and get a referral to the correct specialist. A sleep specialist may help, but I think a psychiatrist could offer better advice at this stage.

I hope you'll find a way out of your current problems.