Exactly, when you sell and indeed to buy back at a cheaper price you might end up not buying back because of so many reasons, which we cannot predict the outcome of what would happen by tomorrow. If you sell to buy back, it destabilize the purpose of investing and increasing your bitcoin portfolio. Patient does not have any role to okay here, because you are waiting for a time that you don't know when the price will dip for you to buy back, and you keep waiting hodling fiat that is depreciating in value.
yeah alot of users are used to such act selling from their bitcoin holding with the mindset of replacing it , one thing you should be Aware of is that most time you won't have that privileged to buy it back that same price or cheaper price ( if one wanted to replace back) , like for instance now alot of users bought bitcoin during the time Bitcoin price was Around $10k , alot of users sold from their holding with the mindset of replacing it back, at the same ( they brought it) or much lower price, but look at now bitcoin already around $70k and alot of people who sold like $500 worth of Bitcoin during $10k which would be
0.5 BTC . And lateron replace it back ( with $500,) during the price range of $60k which would give that same individual 0.0083333 BTC . You can see the great different. That's why not advisable to keep withdrawing from your investment even one having such mindset of selling with replacing it back .and we are all aware that those that started their bitcoin accummulation would be in more advantage's than those that invested now .
That is a fair example, except your math is wrong for the guy who sold
0.05 BTC at $10k (which is the equivalent of $500) in order to buy back cheaper, but he was not successful.
Another example of recent times is that there were probably plenty of guys selling on the way up from $27k to $50k, and they were expecting to be able to buy back cheaper, and they may well not get any opportunities to buy back for cheaper than they sold, and at some point they may well have to suck it up since patience is not likely going to be enough to actually get an opportunity.
that's another factor most persons that sell for the purpose of buying back don't always put into consideration. What's the possibility that Bitcoin would ever get low to the amount you've sold your holding? The reality is that at some point, you will get to understand that it's not always about being patient enough till Bitcoin dips down so you can buy back. Their are past prices that Bitcoin will never go back to and those that sold at those price with the purpose of buying back might have probably realized that it's not realistic for them to buy back at the level of dip they had speculated while they sold part of thier holdings and would just have to buy at the current price with future bullish period in mind and never consider that they've loosed in their strategy to buying back at the DIP.
One of the main issues with selling to buying back in the future dips is that you don't know when to expect the dip and can't tell how long you have to wait before it dips below the amount you've sold part of your bitcoin and with a lots of uncertainties that's associated with it, selling to buy back might in most cases not end well.
Earlier this year when the price was revolving around $40k, somany might have been between two opinions of either selling or to continue stacking and those that might have probably sold at those price with the intent of buying back are obviously in the position where they are damn uncertain whether or not Bitcoin will dips back to $40k. And converting your Bitcoin to fiat comes with another issue you have to put into consideration like if your fiat that's now in a centralized system and subject to tax and other regulations would be in good shape for a longer period of time if you necessarily have to stay for months before you will be able to buy back. and believe me that it will get to a point when we will be certain that such a scenario may never happen which means that we can't buy back at the price we sold our Bitcoin.