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There is no specific time, that when an emergency situation will come in our daily life, an emergency can always come at any time unexpectedly, so you should always be prepared for such a situation. The emergency fund that you prepare for the safety of Bitcoin cannot be used for anything else, be steadfast in any decision, use it only for the purpose for which you have prepared the emergency fund. If you spend your emergency fund on something else today, and if you have to face an emergency tomorrow, how will you deal with it? Then in that case you will ultimately have to sell your Bitcoin holding. Which can definitely cause a loss, so removing the emergency fund means putting your Bitcoin holding at risk, which can cause a huge loss.
I like to characterize emergency funds as the last funding pool that a guy has before he has to tap into his bitcoin, and surely a guy may well be avoiding tapping into his bitcoin, especially in his earliest years of building his holdings.
For me, we tap into any extra funds that we have when our expenses exceed our income, and surely some kinds of expenses will have higher priority, and perhaps if it is a low priority expense we might be able to either completely not incur it or perhaps we could defer it until after we get paid.
Emergencies do not have to be dire and/or dramatic things, and surely some guys will put themselves into their own emergency situations based on their poor management of their cashflow and/or their various cash cushions.. so surely sometimes we might consider that we might be able to get away with spending down our various cash funds, and we might even calculate our spending based on the date that we are getting paid, and it might ONLY be a few days into the future, but then if we end up miscalculating the amounts, and then we also forget about an expense that we have (for example, a utility bill comes in, and we forgot about it, and usually it is $200 rather than the usual $50) and part of the problem might have had been that we had missed one or two payments, and we had not realized, and if we don't pay it within 2 days, then we have to experience another $100 reconnection fee (since the utility company already is scheduled to shut it off), and so even though our pay is supposed to come in, we had spent most of our reserve monies because bitcoin had dipped or some other reason that we thought was reasonable, but then maybe there is an issue with our pay, and it does not come in, and we are told that our pay is going to come in within one or two weeks (after it was already supposed to arrive).. and sure the running out of money can end up having various snowballing effects that go even further and further, and perhaps our own mismanagement caused the situation to become an emergency.
Many of us likely know people who seem to always be suffering emergencies, and part of the reason for their several and ongoing emergencies likely relates to their poor cashflow management practices (they may even have the skills, but they don't exercise enough common sense and perhaps they have some difficulties to control their spending when they need to keep some of their money for various expenses, including some of their expenses that might vary from month to month (such as utilities, food, transportation costs), .. and maybe even from time to time they have a car/motorcycle break down or they have a computer or a phone that stops working, which causes its own stresses and perhaps additional expenses.
DCA method is an investment method through which you can buy Bitcoin at any time at any price. DCA method never helps you to hold your holdings long-term. Holding it long-term depends entirely on you.
Yes long term holding requires long term planning. There are many people who bought bitcoins using DCA method but could not hold them for a long time, it is seen that many panic and sell them. DCA strategy is the way to slowly accumulate bitcoins and DCA strategy is the way to buy bitcoins at an average price. So long term planning is required to hold long term investment, no one can succeed without planning. Before doing any work we need to plan, if you can't hold long term then investing in Bitcoin is not for you, because short term investment can lead to loss instead of profit.
Maybe they get panic its because they still don't understand on what they are doing.
Long term holding is serious commitment that's why people need to understand the risk first on what they are doing and then prepare to have good cash flow to spend since this is important if they want to engage with Bitcoin since if they have sustainable income and could have lots of discretionary income to spend then provably that their chance to succeed is high and they can ignore those any potential threats that will just disturb them.
They are just one step to get broke if they engage on short term investment and there's good chance that they lose their money on recent massive liquidation happened recently read this one
https://cryptonews.com/news/over-1b-liquidated-in-24-hours-as-bitcoin-crashes-3-percent-worst-day-june-whats-happening/ That's why its better to be a holder rather than joining those people got panic and liquidated by sudden market shift.
Of course, guys get liquidated when they are playing around with leverage or margin, and guys who are just regularly buying bitcoin do not get liquidated, unless they liquidate themselves by selling. Many times if we are just ongoingly buying bitcoin for 4 years and beyond, then by the time we get to 4 years investing, then our cost per BTC is likely at some price point similar to the 200-WMA.. which would be a good place to be. .and yeah, we still might want to continue to buy regularly in the event that we do not have enough bitcoin or more than enough bitcoin.