The best DCA strategy would be to wait for the DIP and purchase some amount and then wait for another DIP with even more intensity then purchase more coins, I know that won't be called as a true DCA technique but that will help to acquire more Bitcoin for you as an investor. Continue in that way until the process is completed and you have allocated everything that you had kept for DCA purpose.
Sure, that is called buying on dips, and surely there is nothing wrong with buying on dips, but you run the risk of both running out of money if you keep buying more and more and the BTC price keeps dipping, so as long as you have yourself covered to include preparations for dips that might not happen, then no problem, keep buying on dips and hope that your last reserve is not met too soon. Another problem is that if you are waiting for dips and holding money in reserves that you want to use to buy BTC, but you are waiting for your price to hit, and if you have not already bought some and you are just waiting for more dip, then you might end up not buying BTC because you were trying to be more greedy than you needed to be in order to suffiicently profit by just making the BTC buy - even if the BTC price may well end up dipping more after you had already stocked up.
I agree with you completely. For a volatile market like Bitcoin, there are high chances that this method may not be as effective as it seem in theory. It might work for a market that is a little stable with dips here and there like we have now. But should there be any major surge in price, one might be left behind or forced to buy at a very high price. Let us not forget too soon that Bitcoin can jump thousands of dollars a day. If that happens, someone waiting to buy the dip might miss the major move.
DCA eliminates the chances of missing out even if there is a spike. DCA also make one have feasible expectations and not be emotionally perturbed when the dip is becoming deeper. In other words, imagine buying the dip only to realise that the supposed dip is not actually the dip as price continue going lower... the chances of panic buying as well as running out of cash (which you captured in your comment) is high.