Practicing and living in the market allows you go through the emotions, because you will be experiencing the ups and downs of the market flows from when it is bullish to when it is bearish, which will help build your psychology. Investor try to be too emotional at the first stage of their investment, just as the OP said that some investors will Buy the Dip and sell immediately they see bullish signal, but they are forgetting that, that same process will happen again and again till there is a new ATH. So for me I would say I will allow them to go through the emotions so that at the end of the day, they can learn on their own, because some of them seem not to understand holding for a long term is more profitable.
It is not everyone who is in the Bitcoin space that has the patience to hold for a long time. Some of them are short-term traders who monitor that market to make profits immediately after the market becomes slightly favorable. But I also agree that some newbies are just so impatient and this might be attributed to a lack of experience. As they spend more time in the ecosystem, they will understand that there is no need to make hasty decisions.
The reality people who buy Bitcoin at the dip and sell during bullish is better than DCA and holding.
From the past 4 years, if someone can buy and sell at the right time, they can at least earn 12x since the price on 2020 was $5K and now it's $70K. If they're DCA-ing Bitcoin from 2020, they're only earn 2x-3x.
Trader is better than investor, everyone can become investor, but not everyone can become trader.
The question now is how will you know the right time to buy or sell to make maximum profit like you illustrated? Bitcoin trading is risky and unpredictable which could lead to unexpected losses. It is easier to say that traders make more money than hodlers but the this is not always the case. Bitcoin hodlers make money in a less stressful and risky conditions.