No I disagree with you on your sentiment here bro. Gradual accumulation or dca accumulating strategy has nothing to do with panicking or not panicking when their is a dip, because it is an accumulation strategy that makes accumulation easier.

What I believe that makes an investor not to panic during a dip, is when the investor invest only what he can afford to lose, because since he is investing what he can afford to lose, he will still be able to control his emotions because the outcome of his investment cannot affect him emotionally, unlike someone that invested what he cannot afford to lose, to such person, every dip is a big problem that they will think that it's the end for them.

In fact, many potential bitcoin investors lack the friends who would tell them that it is not such a difficult task to invest bitcoin, especially if you use the only correct DCA strategy. But, unfortunately, many are afraid to take the time to understand bitcoin and blockchain, and therefore they are not participants in investing. I also want to note that in today's fast pace of life, many people succumb to the false idea that money can and should be earned quickly, but in fact 4-10 years is not such a long time that will pass unnoticed if you just set out to invest your discretionary income using the DCA strategy. I think the most important thing for such investors is just to develop a habit, psychologists say that this has been happening for the third time. Therefore, it is easier than it seems to embark on the path of sound investment.

Unfortunately, not all beginner investors, whether they have small or large capital, think this way. It can be really hard to maintain high consistency in mindset and discipline. Even professional investors seem to need a lot of time to achieve that. I myself, over nearly 11 years, still sometimes make mistakes. Many people want to become investors with the goal of getting rich quick, but very few can last long. So don’t think about how big your earnings are; instead, learn to be consistently persistent. Any amount of capital can help you last longer, which is the ultimate goal. Psychological mindset will play a big role in this investment.

Your forced investor concept may be useful in explaining some situations, but I wouldn’t take it as the main explanation for the Bitcoin investor’s problem. Suppose a person bought Bitcoin for $120k at once and now the price has gone down. If he is just waiting for $120k to come back. He can sell it at $120k and get his dollars back, then the first question that comes to mind is what was his real goal? To accumulate Bitcoin, or to take a price trade and take a fiat profit?

For a long-term investor, his initial entry price is not supposed to be an exit line. The focus of the investment is more on how much Bitcoin is being accumulated, depending on how sustainably he is buying according to his cashflow.

Now, let’s talk about DCA.

Yes, if a person had bought over time without pouring the entire available amount into $120k, subsequent purchases could have reduced his average acquisition cost as the price went down. This is a practical benefit of DCA. Suppose he bought regularly at $120k, $100k, $105k and $90k. His average cost has come down, but if BTC is at $70k, he may still be in unrealized loss. Here it is understood that dca does not stop the risk of loss or completely eliminate it. A single entry point reduces the need to guess correctly and helps in accumulation over a long period of time. So if you bought at $120k and today your only thought is, When will it be $120k so that I can get out?, then maybe the real problem is in the mindset. This cannot be an investment in any way, it is a trading type mindset.

Making a large purchase isn't the problem, as long as the investor makes it from his discretionary income and can hold for long. Not everyone who makes a large purchase would panic. Lump sum is still a valid accumulation strategy and if the investor has a large discretionary income at his disposal, then he can go ahead. Where it becomes a problem is when you go beyond your discretionary income to make a large purchase, which is overaggressiveness.

A small investor can win a lottery, raffle or be gifted a huge sum of money and he can choose to lump sum with a major part of it into Bitcoin and continue to hold. It is a good thing when investors seize rare opportunities like these to get much ahead in their accumulation journey and still follow up with their consistent buys to reach their accumulation target. It's better that an investor who comes in contact with such large discretionary income puts a good share of it into Bitcoin to protect its value instead of leaving it in fiat which will still depreciate.

Even people who have knowledge about bitcoin still panic when market price drop. I don’t think it is about just having the knowledge, it solely the depends on the level of the individual on how they handle the dip.
Once an individual understands how volatile bitcoin can be, then it is left to them to make the decision of holding or selling, knowing fully well the importance of holding but emotions would actually make some persons sell, since profit aren’t guaranteed while self control and patience will make some hodl.

In the last 12.5 years since I have been in bitcoin, I have heard many times guys whining about how they had bought at the top and how they know about other people who bought at the top.

I frequently would say: "So fucking what? If you were serious about bitcoin at the top, then our current prices should be really good."

Many guys think that they are locked in when they start at the top, and sure, perhaps part of the problem is that some of them think that they blew their whole wadd at the top, so that they do not have any money left (or that they want to put into bitcoin).

Many times the problem is resolved by ongoingly investing.

In late November 2013, when I started to buy bitcoin, I started at the top, so my very first purchase was for bitcoin at $1,200 (which was higher than the top because of various fees in the way that I had gotten it), so then sure I continued to buy bitcoin and my average cost per bitcoin continued to get lower because the BTC price continued to go down throughout 2014 and then to pretty much stay flat at the bottom (around $250) for the whole of 2015.  So by the time we got to early 2015, my cost per BTC was in the upper $500s and then  by the time we got to the end of 2015, my cost per BTC were slightly below $500, but my holdings were still largely in the negative based on the then BTC prices.. but I continued to buy and even having my own cashflow problems that made it difficult to buy very much bitcoin in 2015 when the prices were the lowest.

Part of the value in NOT blowing your whole wadd at the top is that you are prepared to continue to buy if the price goes down. 

Part of the value of continuing to buy bitcoin tends to be that your average cost per BTC continues to go down so that BTC prices do not have to reach the previous ATH for your BTC holdings to come into being "in profits" on paper.

So sure there were likely some guys who bought at higher prices and they may even could have had bought "too much," yet I would think that if they continue to have an income it likely could be a good thing to continue to buy, yet surely guys have to make these decisions for themselves and surely guys do get worried about an ongoing and continuing (and never stopping) spiraling down of the price, so that they continue to buy but the prices continue to get lower.. So yeah, guys might have that fear, yet they still have to decide what they are going to do...and sure some guys do end up choosing to buy high and sell lower than their buy price rather than to just keep buying.. since there are no guarantees that the BTC price is going to go back up or even go up enough to recoupe losses.

And, yeah some other guys continue to buy but then as soon as they get into "profits" they end up selling, and yeah, those are choices.  The ones who sold at $500 in 2016 were likely regretting it. Even the ones who sold at $1,200, or any place under $3k were likely regretting it, yet people do what they are going to do, even dumb shit (maybe their level of dumb is not realized until several years later, too?).