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The ease of using the DCA method must be accompanied by confidence, because this confidence will ensure everything runs smoothly without being affected by anything, because we are confident that no matter what happens, it will not prevent Bitcoin from continuing to rise in the long term.
Every investment comes with risk and the same applies for bitcoin too and you can never say I am 100% sure that bitcoin will be higher in the next 5 years from the current price and it will likely to be but my point is there's always risk factor in it which creates pressure for retail investors.
To minimize this risk they also should follow diversification, if they can invest $250 a month and no more than that then I recommend that $100 for bitcoin and the remaining for other things they consider potential too grow which reduces the risk and able to have a peace of mind even when the price of bitcoin is crashing because I can't imagine all my savings is in bitcoin and it is crashing 30% in a day will surely creates a panic situation that might force some of them to sell that will result in a capital loss and wasting few years of investing.
Diversification is also good and am not against it. One is free to do other investments outside Bitcoin which your you have sound knowledge about and which also predicts future gains as you studied it too.
My point is about what you said on the panic that rises in the side of the investor if Bitcoin drops up to 30% just as you illustrated above, and to avoid such panic, the investor should have other investments. I think having other investments shouldn't literally be to cover up for the losses that you might incure in your Bitcoin assets or to leverage on when Bitcoin dips. Remember that the investor, a newbie or an average investor had accumulated his Bitcoin or is accumulating with his discretionary funds. This simply means that basic needs and some other needs are already taking care of and then he comfortably accumulates with the left of over income. Employing that DCA strategy too makes it more easier for the investor to accumulate bit by bit and slowly grow his Bitcoin portfolio.
So I don't see a need while such an investor will be panicking to sell, sell, and sell if Bitcoin begins to drop. His emergency funds and all other back up funds which has been created from his discretionary funds will stand the test and ease his mind from panicking. Moreover, over the years, nothing has proven worthy of appreciation like Bitcoin. It can drop, very low, but surely climbs and at that time, those who invests with peace and hold with future positive mindset smiles last. Bitcoin is an asset, and has proven itself worthy over time. Just get everything set and rolling, no panicking, keep investing in the little way you can from your discretionary funds. That's the mentality of real investors. You will reap in due seasons if you faint not in the days of Dipping.