Buying the dip is a strategy that can only be used by long term investors, if traders try to do something like that most likely will suffer heavy consequences because of it, after all as you say there is no way to know how deep a decrease in the price is actually going to be, so those buying expecting an immediate recovery are taking even more risk by doing something like this.
You’re correct about that. Buying the dip is not something that everyone can just do, anyone that is doing that has to be very careful, because if you make the mistake of rushing to buy the deep you might end up buying it when it’s not even at the lowest and then the price will continue to go down the more and you will continue to lose as well. So it’s always best to just calm down and wait for the price to a certain extent. Unless maybe if you are buying after the price has reached an all time high price and started to plummet, you canwait for it to hit a very low, maybe like minus 50% and you can buy. Insituations like this, long term investors always have hope that they will recover the amount of the their invested money no matter what. Like I saw someone who bought Bitcoin around $20,000 during the 2017 bull run and the price dropped, but now the price has gone past that $20,000 during the last bull and has reached even up to $60,000.