Of course, another problem with selling too much too soon is that we would never really know for sure when to get back in, so then we spend a lot of time waiting for the price to drop to some kind of a target price, and maybe it drops and maybe it does not. If we are still accumulating bitcoin, we might end up waiting and waiting to buy, and instead of buying regularly, persistently, ongoingly, consistently and perhaps even aggressively, we are waiting. Waiting is not a good strategy for anyone who is still in their accumulation stage and who has not yet reached a high enough status of accumulation or a status of overaccumulation.
Guys can do what they like, yet in bitcoin, we have a large number of bitcoiners (perhaps low coiners) who end up selling way too much of their bitcoin too soon, even when they should be accumulating bitcoin and they may well even consider themselves to be accumulating bitcoin, yet they are engaging in conduct to sell bitcoin with a purpose of buying more of it, which is contradictory and does not help to bring them to their goal of reaching overaccumulation status.. .which is a place that most of us should want to be, even if our numbers in regards to what is overaccumulation status are different.
Right now, I would consider a person who has a goal to have an
$80k per year income to be at his threshold of overaccumulation status with 16.837 BTC. Sure, if he has a few more bitcoin (maybe something like 20 BTC for cushion of 3.163 BTC) then that makes it easier to make sure that he does not ever dip below overaccumulation status in the event that he wants to enter into either price-based and/or time-based sustainable withdrawal.
I doubt that selling and/or trading as compared to strict regular, ongoing and perhaps even aggressive buying helps to assure getting to an overaccumulation status faster.. and from my perspective if a person sells bitcoin in order to try to buy back at a lower price, then he is likely taking chances (ie. gambling) in terms of screwing up his accumulation of BTC. Sure, he might get lucky, but from my perspective it is not worth it to be taking those kinds of chances with an investment like bitcoin.
Having to wait for a specific price target can actually turn out to be a sort of suboptimal approach for those investors who are still very much in the accumulation stage of Bitcoin investment. Rather than finding themselves in a state/position of consistent and/aggressive buying or accumulation, they may eventually find themselves discouraged or paralyzed by FOMO on potential DIPs. This can potentially disrupt their progress towards reaching or achieving their long term financial goals.
And I totally agree with you on your opinion about individuals selling off their Bitcoins with intentions of rebuying (if there's ever a word like that) being contradictory, because with this approach, I don't think it's ever possible for investors with such mindset to reach a fuck you status or a state of overaccumulation, which of course should be the target of every true Bitcoin investor. But when investors prioritize consistent and/aggressive accumulation, they put themselves in a much better position to achieve this target in the long run.
When we talk about the concept of overaccumulation, I believe it varies from person to person, and this is mostly dependent on the investor's personal financial goals and of course, requirements. Having a cushion of Bitcoin may also have several benefits, such as providing the investor the peace of mind and flexibility when considering different types of sustainable withdrawal strategies. Some investors' ultimate goal in this area might be taking their Bitcoin holdings to a level where it'll be able to generate them a steady income, while for some, it could be just to store and preserve their wealth, so intentions and requirements do actually varies.
If we are to consider this from a strategic perspective, consistent accumulation of Bitcoin offers a much more security and can be considered to be a lot more effective than attempting to time the market through selling off a portion of their holdings and waiting for a DIP or potential buying opportunities which of course is more of a trader's mindset. The market is very volatile and it can be almost impossible to predict the market's next move, which make this approach a very risky one, so in order to mitigate (not completely eliminate though) it's best to completely avoid the uncertainty associated with attempting to time the market by engaging in consistent and/of aggressive accumulation.
Another thing is that, the approach of selling off Bitcoin with intentions of buying back at a much more lower price is purely gambling. It's not as if there aren't people who actually gets away with it, but you know, just like gambling, it's purely about luck, and if you're not lucky, then you end up losing and missing out on potential opportunities thereby defeating your aim and purpose for selling in the first place.