I agree with everything that you said in your post except the last line (above), and it is problematic to believe that the bitcoin price will "always recover," even if we know historically the BTC price has trended up, and there is no real evidence that the UP trend in bitcoin is going to stop, but it is still not guaranteed to go up. so it is inaccurate to use the term "always" whether you are merely thinking it in your mind or believing that it is actually going to happen that way and that is the reason why you might end up overly leveraging into bitcoin because you wrongly have those beliefs about bitcoin being "guaranteed" to go up..
You are right, there is no guarantees even in life. I just used that for emphasis but it turned out to be wrong. You will agree with me that investing in Bitcoin requires some form of trust and confidence that it will be worth the funds injected into it even if this is a passive income.
I am not sure if I agree because it still seems to be in your head that the BTC price is going to go up no matter what, which is not true. We cannot really know the future until it arrives, and even if a future that had a 10% chance of happening ends up happening then that one becomes 100%, even though there were a variety of alternative futures that had better chances at an earlier date.
I think it's too early to say or even conclude that Bitcoin will always increase, on the other hand it is a pretty good perspective in terms of more convincing ourselves of the accumulation of bitcoin that we are living, but on the other hand it will not always be like that, this is a market that in general will not always be in accordance with what we always expect and of course none other than that because of the risk opportunities that can suddenly befall us without warning. So of course I agree with you that the future cannot always be predicted accurately, and maybe we can only speculate a little with some potential indications of what will happen in the next few years to Bitcoin.
We will only be able to know for sure when it actually happens to confirm whether our previous predictions were right or wrong. If indeed the future, especially about Bitcoin, can be predicted with 100% accuracy then I think some risk management will not be useful, because they already know that that way they will definitely get profit. On the other hand, basically yes, we can only hope for the best along with several other actions as supporters of Bitcoin accumulation such as the knowledge and knowledge we have and also do not forget to always be firm on planning and risk management to minimize things (losses) that are not desired.