Actually you have just spoken my mind on this selling all his Bitcoin at once, no matter how much money you have accumulated in Bitcoin or outside Bitcoin, and think of selling all Bitcoin is the best way, my brother it is not best way, on my own i see all my investment in Bitcoin as an asset, because Bitcoin is my lifetime investment and selling it in a hurry or anytime soon will never come my mind, i will always hodl the dips in long term, so it is very good to always plan ahead of you future, because once you sell up your Bitcoin temptation of the things you will use the money will come immediately as if it was planned and that will make you to start all over again from the cretch and which it will take along time to accumulate, but selling some parts of the investment when you think is due to sell, you can sell some at of it than selling all, and that is why they thread on buy the dip and hodl was created for it to be refreshing our minds on how we should go about our Bitcoin for those that is still coming up.
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The main purpose of an emergency fund is to carry Bitcoin investments for the long term and hold more as the price rises or downtrend.
I don't understand what you mean when you said emergency fund is to carry Bitcoin investment for a long run, surely emergency fund serve the purpose of emergency as the name implies. This means that if any emergency occure, the emergency fund will be used to sort out this issues to avoid selling Bitcoin too quickly before the speculated time frame or horizon.
I recomandation made about the main purpose of an emergency fund basically applies to growing Bitcoin and holdings. If you have an excess of emergency funds, you can use them to buy some fractions during bearish times, and I also said to refund them so that you don't run out of funds because any unforeseen situation can arise in your environment. The name many might think that this is only a backup/emergency fund for Bitcoin investments for long, that means you can also use it to increase your Bitcoin holdings. I think you may not need additional emergency funds at a single time.
Some investors use emergency funds to buy more during a bear market,
I can't argue that, but it's not a good practice. That most people are doing the wrong thing does not make it right. There could be times when a Bitcoin investor may be slacking in his discretion fund and instead of selling their Bitcoin HODLing, they will use the emergency fund and replace it later. But it is not a good practice because if a person surely continue, he may see noo need to continue with emergency fund since it looks like it is non functional and may decide to stop setting aside emergency fund.
You have to remember that the effects of a bear market are not long-term, maybe a few weeks or less. If an investor has enough liquidity to cover their family's daily needs for more than a year, I would consider holding more Bitcoin because I am piling up another valuable asset instead of one and have a commitment to take or replace that fund at a later date. The goal is to make Bitcoin investments last longer and try to increase the size of the bitcoin stash to reach the desired point, and I would probably feel positive about applying my own strategy here with accumulation.