This strategy on the chain tells you exactly when to buy more BTC

Bitcoin (BTC) has been in consolidation mode for a few weeks and analysts are of the opinion that this is the right time to continue to collect it inactive.

A report A Smart Dollar -Cost Averaging (DCA) method explained by the market analysis company Cryptoquant based on realized price signals. This is to help investors collect BTC to achieve the price valuation of the assets.

When should you buy more BTC

DCA tries to minimize the impact of market volatility on large crypto acquisitions. It includes the allocation of a fixed amount of capital at regular intervals, regardless of the price of the purchased asset.

According to Cryptoquant analyst Borisvest, this DCA strategy offers a data-driven solution that tackles one of the biggest challenges in Bitcoin investments. This method helps investors to prevent them from entering the market during tops or periods of fear of missing (FOMO). It also enables market participants to take advantage of soils despite fearful sentiment, reversing emotional trade cycles and which leads to long -term success.

DCA from Cryptoquant orders BTC to buy when the price falls under the realized price from a week to a week. At such levels, holders of short -term are often under increased sales pressure as they are in red. The strategy is carried out during such periods of purchases, so that the BTC and USD costs base stay closer.

Need more accumulation

At the time of the press, the price of a week to a month realized around $ 117,700, while the price of BTC floated around $ 117,760. This indicates that the market is still in the battery zone, although the price is approaching the realized threshold. As long as the price of Bitcoin remains below the level of $ 117,700, investors can continue to accumulate.

However, once the price climbs above the realized threshold, it is time to gradually sell the acquired assets, using the same approach.

“In essence, Smart DCA removes emotion from the decision-making process and replaces it by behavioral chain statistics. By selling during anxiety-driven dips and in strength, it builds a more resilient and optimized portfolio over time,” Borisvest added.

In the meantime, traders have used Bitcoin’s price movement to grow their participations. Cryptopotato reported that they bought around 120,000 BTC when Bitcoin recovered from $ 112,000 to $ 116,000 for the past two days. However, the market needs a stronger accumulation to offer sustainable support.