Bitcoin (BTC) has been in consolidation for several weeks. Analysts believe this is the right time to accumulate the leading crypto asset.
What is DCA Strategy for Bitcoin
Dollar-cost averaging (DCA) strategy helps minimize the impact of market volatility on large cryptocurrency acquisitions. It involves allocating a fixed amount of capital at regular intervals, regardless of the asset's price. This method helps investors avoid buying at peaks or in fear of missing out (FOMO), as well as utilize lower prices for accumulation.
Current Bitcoin Market Situation
At press time, the realized price for Bitcoin over one week and one month stood at around $117,700, while Bitcoin itself was priced around $117,760. This indicates that the market is still in an accumulation zone, although the price is nearing the realized threshold. Investors can continue accumulating as long as the price remains below $117,700.
Advantages and Recommendations for Accumulation
BorisVest, an analyst at CryptoQuant, states that the DCA strategy provides a data-driven solution that addresses one of the main challenges in Bitcoin investing. He adds: “In essence, Smart DCA removes emotion from the decision-making process and replaces it with behavioral on-chain metrics. By buying during fear-driven dips and selling into strength, it builds a more resilient and optimized portfolio over time.”
Thus, utilizing the DCA strategy can assist investors in accumulating Bitcoin during periods of volatility. By following accumulation recommendations and purchasing the asset within certain price ranges, investors can minimize risks and optimize their portfolios.
