The whole crypto space is littered with 'buy the dip' and the primary counsel before that advice seems to be fading away but without that primary advice, you might cease to exist in the space, most especially if you have used up all of your savings in the course of that investment. When you want to consider buying a dip, firstly, pause, DO YOUR OWN RESEARCH before you activate that buy button.
The idea of HODL is entirely up to you and your greed level. If you wish to have trust in the project, then, its entirely up to you.
We are not talking about "the whole crypto space" in this thread.
We are talking about bitcoin, and even though you might not be focused on the actual topic of the thread, you are correct that buying the dip really ONLY makes sense if the project has pumpamentals - meaning that it is going to go up from the time that it is bought... but surely the idea goes further than merely pumpamentals - and you seem to recognize the idea of fundamental values and long term investing, so we might not be so much concerned about short-term price movements and short-term pumpamentals, even though surely guys are going to want to have had boughten on the dip - even if the BTC price might keep dipping they might run out of money or have to resort to holding because they have run out of money (or maybe just buying when their paychecks come in and not really overdoing how much they are buying) so that they might still be able to have some money even if the BTC price keeps dipping so that they might be able to buy some more BTC at lower prices.
Bitcoin has no limit to what extent its price could go at a particular trend whether it be an uptrend or dip the fact is that anyone stashing up Bitcoin should already have a predetermined conviction to hold for the long term base, so with that long-term principle it will become easy for the investors to either buy more when the price vs his last buy price go dipper or he resort into taking a break and continue holding.
Since bitcoin is not like shitcoin whose holder must be careful about holding on to a long-term basis, since there may be a possible dump of price, but with bitcoin all the investor needs to do is to have a proper DCA buying mechanism that will checkmate the buying process not to overdo or overbought as you have stated.