We are finishing this week with:
🟧 BTC bouncing back on the $30,000 level.
🟧 But still stuck in the 2nd longest drawdown in a post-halving market.
... (1/5)
Indeed this #Bitcoin drawdown:
🟧 Now lasted 103 days.
🟧 Bottomed at -55% from the ATH.
🟧 Has been caught in a relatively low volatility environment since then.
... (2/5)
So while it is nice to see #BTC on the uptrend for the last few days it could still take a while for a new parabolic move to develop.
Remember than the massive drawdown of 2013 lasted 200 days... (3/5)
... and with volatility still on the downtrend it is less likely (although not impossible) for the price to jump suddenly... (4/5)
So probably the best thing to do now is do like everyone else: stack sats.
Play the long game and accumulate slowly but surely.
This is what most of people are doing these days according to #Bitcoin on-chain data. (5/5)
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Facts about dollar cost averaging:
• How often you DCA doesn’t really matter.
• There is no such thing as a best day to DCA.
• You can lose money with DCA, so choose your asset wisely.
More details 🧵
You can dollar cost average an asset daily, weekly or monthly, over the long run it doesn’t matter.
The only thing that matters is that you are consistent.
Just do it.
You might want to “optimize” your dollar cost averaging strategy by picking the best time to buy.
This is pointless. Pick any day of the week to DCA, that makes virtually no difference over the long run.
Sorry to break it to you, but dollar cost averaging isn’t the ultimate investment strategy.
If you are looking to maximize your return on investment, look elsewhere.
Let's see why and how to improve it.
You all know what dollar cost averaging is. Pick an asset:
- Buy a fixed $ amount of that asset.
- Do that at regular time intervals.
Continue until you are tired of it.
If you started dollar cost averaging the SP500 at $100 per week in 2012 you would now have:
- Deployed $50k.
- For a profit of $27k.
- Or a ROI of 54%.