This method buy the DIP and HODL is one of the most trading strategies or tactics in the Bitcoin and crypto market or in the investment cycle. This is when most investor like acquring coin having the believe that the price will some day go high, same also in most cases when you think the price will go high but eventually it starts deprecating in value.
Also this method doesn't guarantee 100% profit believing that since the price is low at when is been aquire it will definitely hit at ATH, so in such case as an investor one also need to have two things in mind which is either gain or loss unless you wish to HODL for a longer period of time.
You sound so much like a short term trader because all you just described are characteristics of traders. With long term holding of Bitcoin, the only time you incur loses is when you sell. If you hold for long, you will definitely make profit. The problem with people who sell at loss is that they invest money they can not afford to set aside for long. When you put in money meant for other pressing needs into Bitcoin, there is no way you will not get agitated and panic sell when the profit is not forthcoming, this is the problem with traders.
Unlike the traders and short term investors, buy the dip require that you buy and hold for long. To do this, you must first set aside part of your income for your basic needs and another part for emergency that might arise which you did not capture in your investment planning. After these have been put in place, you can then invest from the balance and you will not be under any pressure to sell when the market is going downward instead of rising.