[edited out]
You are right. but I have my opinion, if someone really wants to diversify their assets and is already investing in Bitcoin regularly following the DCA method, then investing in Bitcoin in another way can also be done as diversification. For example, let's say he is investing $200 weekly in Bitcoin from his discretionary income. Suddenly his income increases. Then if he thinks that he will invest the rest of the money somewhere else, then he can buy more BTC for long-term holding when the price of Bitcoin will be DIP. He will create a separate fund where he will deposit his extra income and when he feels that the price of Bitcoin has decreased comparatively, he will invest and hold as much Bitcoin as possible. In addition, his regular Bitcoin investment will continue. This decision can be better than any other decision. Because investing in Bitcoin will always give much more profit compared to any other investment.Bitcoin is a much more profitable option for future security.
There is nothing wrong with a guy who might choose to set aside other funds for buying the dip. That is not really called diversification, even though it is employing more than one method for accumulating bitcoin that might result in accumulating more cash if the BTC price does not dip.
Let''s say that we have a guy with a $50k per year income, and he is investing $200 per week into bitcoin. That would be $10k per year and that would be right around 25% of the guys income going into bitcoin investment. Maybe if he already had been buying bitcoin for a full year, then he has $10k worth of bitcoin and whatever amount that his bitcoin holdings had appreciated during the time that he had been accumulating it. There are websites that we can look up the numbers to make sure our hypothetical is realistic... so maybe this
guy has 0.14507 BTC after one year of $200 per week.
So then how much is the raise? Did he go from $50k to $60k or maybe from $50k to $55k? The extra amount or some proportion of the extra amount could be set aside for buying the dip, as you mentioned. I am not sure if there is any compelling case to be made for doing it or not doing it (except that in the case that I described, the guy is already allocating a pretty high percentage of his income to bitcoin investing.. and so hopefully he has already established an emergency fund, or maybe he might need to spend some of his income or the bonus money to shore up his emergency funds). No matter the case, bitcoin investors can decide these kinds of balances of their income and their extra income.
However, the balance between income and investment that you mentioned is really very important. Because if there is no balance, if there is no understanding about fund management, then there is a possibility of any loss in the future. And the most important thing that I think is to create a proper reserve fund and emergency fund of investing in Bitcoin.