Here's an example:

Let's say you managed to buy 1 BTC last year at an average price of $40k. Now you have to wait for the price to get back to $40k to "break even".

Here are some scenarios:

If you buy 1 BTC at $19k, you lower your average purchase price to $29k.

If you buy 0.25 BTC at $19k, you lower your average purchase price to $35k.

If you buy 0.10 BTC at $19k, you lower your average purchase price to $38k.

So as you can see, if you buy again, even if it's just a little, it will help a lot to lower down your cost basis.

Now, if the price keeps dropping even further, things get really interesting.

For example, let's say the price crashes in a black swan event down to $8k.

You have 2 choices:

1) Just HODL and hope that Bitcoin one day goes back to $40k so that you can break even.

2) Buy a lot more, for example: You buy 2 additional BTC and lower your average purchase price to $18k!!! Now if Bitcoin goes back up to $18k you are breaking even.

This, my friends, is the power of averaging down.

Keep stacking.