It’s a bear market.
Bitcoin is already down around 40–47% from its high to the recent local bottom. And because I was vocal about selling near the pico top, I now get the same question almost daily:
“When do we buy Bitcoin again?”
Here’s the honest answer.
I don’t try to call the pico bottom.
Yes, I believe we could see sub $50K. Maybe even $40K. That’s possible. But am I waiting for the perfect number to deploy everything? No.
Instead, this is where DCA comes in.
Today it’s Sunday, and as always, we like to dive a little deeper into topics at the end of a week. So we break down DCA’ing in simple terms.
This is part 22 of a series of trading guides
What Is DCA?
DCA stands for Dollar-Cost Averaging.
It’s an investment strategy where you buy a fixed amount of an asset at regular intervals, regardless of the price.
For example:
- $500 every month
- Every week
- Every quarter
It doesn’t matter if price is up or down. You stick to the plan.
Instead of trying to perfectly time the bottom, you spread your entries over time.
Simple. Boring. Effective.
How Does DCA Actually Work?
Let’s say Bitcoin drops from $70K to $45K.
Instead of going all-in at $45K (and risking it dropping to $40K), you could:
- Buy a small portion now
- Buy again next month
- Buy again the month after
If price drops further, you buy cheaper.
If price rebounds, you already have exposure.
Over time, your average entry price smooths out.
That’s the key.
DCA removes the emotional pressure of “what if I’m wrong?”
Why Would You Use DCA?
Because timing markets is hard.
Even professionals rarely catch exact bottoms or tops.
DCA helps with:
• Reducing emotional stress
• Avoiding all-in mistakes
• Building positions slowly
• Staying consistent
In bear markets, volatility is high. Sentiment is weak. News is negative.
This is exactly when DCA can shine.
You don’t need to predict the day the market turns. You just need to participate.
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When Is DCA a Good Strategy?
DCA works best when:
• You have long-term conviction
• You believe in the asset fundamentally
• You expect volatility
• You are not trading short term
It’s ideal for investors, not gamblers.
If your plan is to flip in two weeks, DCA is not your tool.
But if you believe Bitcoin will be higher in 4–8 years, DCA makes sense.
The same applies to broad stock indexes.
Does DCA Only Apply to Bitcoin?
No.
I’m personally applying DCA to the S&P 500 right now.
Even though it’s near all-time highs.
Why?
Because I want long-term exposure to U.S. equities. I don’t know if we drop 10% next month or rally 15%. So instead of guessing, I’m deploying monthly over the next four years.
That’s long-term positioning.
DCA works for:
• Bitcoin
• Crypto
• Index funds
• Stocks
• Commodities
The strategy is universal.
Is DCA Only for Buying?
Not at all.
You can also DCA out.
This is something most beginners forget.
When the market feels euphoric, heavy, or overheated, instead of trying to sell the exact top, you can gradually sell portions.
For example:
• Sell 10% every month
• Reduce exposure slowly
• Lock in profits step by step
It’s the same logic.
You cannot time the exact top either.
So you average out your exits.
This reduces regret.
Different Ways to DCA
There are multiple variations:
1. Fixed-Time DCA
Buy every week or month. Simple and automated.
2. Value-Based DCA
Invest more when price drops heavily, less when price is high.
3. Time-Window DCA
Pick a specific macro window and deploy aggressively within that period.
This is closer to my approach.
My Personal Bitcoin DCA Strategy
Arguments can be made that starting now is reasonable.
If the 4-year cycle remains intact, accumulating over the next 12 months could work well.
However, after surviving crypto for 12 years, here’s my plan right now:
I am waiting until summer.
Then I will DCA for six months.
That means I’m choosing a specific time window to deploy capital more aggressively.
This doesn’t mean I’m correct.
It simply means I’m comfortable with this approach based on cycle structure, sentiment, and liquidity.
If market conditions change, I will adapt.
DCA is not blind automation. It’s structured flexibility.
Common Mistakes With DCA
Let’s address a few traps.
1. Stopping Too Early
Many people start DCA during fear. Then price drops further. They panic and quit.
That defeats the purpose.
2. DCA Without Conviction
If you don’t believe in the asset long term, you won’t stick to the plan.
3. Deploying Money You Need Soon
DCA is for long-term capital. Not rent money.
Why DCA Works Psychologically
Markets move in cycles.
Humans move in emotions.
DCA removes the emotional spikes from your decision-making.
You stop obsessing over candles.
You focus on process.
For beginners, this is powerful.
Especially in volatile assets like Bitcoin.
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Does DCA Guarantee Profit?
No strategy guarantees profit.
If the asset trends downward for years, DCA will not save you.
That’s why conviction matters.
DCA works best when applied to fundamentally strong assets over long time horizons.
Final Thoughts on DCA
Everyone wants the pico top and pico bottom.
Very few actually catch them.
If you sold near the highs and now wonder when to re-enter, the honest answer is:
You don’t need to predict perfectly.
You need a system.
DCA is that system.
It spreads risk.
Stress gets reduced.
It keeps you active.
It builds long-term exposure.
For Bitcoin, the next year could present opportunity.
For stocks, the same logic applies.
As for me, I’m waiting for summer to begin my six-month Bitcoin DCA window.
That’s my plan today.
It may evolve.
Because markets evolve.
But one thing stays the same:
Process beats prediction.
And in bear markets, patience usually wins.
If you enjoyed this blog, check out our last trading guide on positioning sizing.
As always, don’t forget to claim your bonus below on Bybit. See you next time!
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