The on component event gets hit only once, when beginning or ending an overlap. So you will either need to store that you have pressed the button (On Pressed set a bool like you are, then unset when releasing).
However, it sounds like you want it so that when you overlap, then you want to press. So you will need to set some kind of bool for the overlap (OverlappingMyThing = true), then on the button press, check your bool and if so perform your action.