Let's assume I'm doing DCA of $500 or $1000 into Bitcoin during the dips...
Imho, you shall either use "buy the dips' or "DCA" methodology.
I am not sure whether the hybrid approach works.
DCA typically means that you buy daily, weekly, bi-weekly or monthly (as a paycheck or cash flow comes depending on how you get paid).
Well, I've modified the strategy according to my needs, instead of doing DCA buying each week, I save that money in stable coins and when market faces a major correction or dip and that happens every month, sometimes every week, I buy those dips.
As a trader I also open short trades when new ATH is formed because I've noticed that after a new ATH market somehow needs a correction. But, I open those short trades with 1x leverage and thus there's not much risk of losing those trades.
After being part of the market for many years I've formed my own strategies which have given me some good profits but of course there's no alternative of DCA. In the long run the ones who do DCA + Holding will make way more profit, but sometimes it's okay to have short term profits as well.