.
For sure, buying the dip is likely to be an inferior strategy, yet it could be a good supplemental practice for someone who might start their bitcoin investment with a lump sum and then maybe wanting to hold back some of the initial injection money for possibly buying dips after their having had initially bought with such a lump sum amount... for example, if a guy had started out investing $100 per week into bitcoin, and then he remembered that he had right around $2,600 extra that he had in savings. He realizes that $2,600 is about the same as his investing for 26 weeks, and so he considers whether to buy with the $2,600 right away and/or maybe to defer using time (dca) with part of it and/or whether he might structure some buys of the dip with some of it.
Maybe he also knows that once or twice a year, he gets a bonus that is anywhere between $1,500 and $3k, depending on how well his company does...so he can consider those bonuses to potentially be eligible for buying BTC right away and/or DCAing and/or buying on the dip. He could divide the amount into three parts and/or he could put some of the money into his back up funds, whether in his emergency funds and/or reserve funds. Nice thing about receiving a lump sum amount is having more options, and perhaps prior to getting into bitcoin, a guy might have just considered some things that he might buy with the extra funds, but then after learning about bitcoin, he learns how to invest with the money and perhaps have some hope that he will be better off to invest into bitcoin rather than not doing so.
You are doing an extremely valid point regarding the timing disadvantagedness of the dip. I myself have experienced the same, when I attempted to wait and see the ideal moment, this will only create a feeling of hesitation and loss of opportunity. That is why DCA is so consistent, it reduces the guess work and leaves you compounding consistently no matter what.
I prefer your example of a person earning 100/week and then finding out that person has a 2600 bonus just sitting there. To strike a wise balance between risk and opportunity, it is reasonable to divide that bonus into pieces; some to do direct purchases, some to DCA, some in the event of a dip possibility. It is like a mini strategy within a strategy so it is flexible but does not over think each market action.
I believe that the main takeaway here is that when getting lump sums, such as the bonuses, it is possible to increase your choices, instead of feeling pressure. The thought of diversifying the investment portfolio can also be less daunting by planning on how to allocate those emergency, reserve, and bitcoin funds. Wondering whether anyone has this split of the added on cash or different ways to mix together DCA and lumps.