Has the Bitcoin Dollar-Cost Averaging Window Closed? Insights from Traders on TradingView News

As Bitcoin’s dominance approaches the 60% mark following recent stagnation in price as 2024 ends, traders are increasingly considering a shift from Bitcoin to altcoins in their portfolio strategies.

“At this point, altcoins present a more favorable risk/reward scenario compared to Bitcoin,” shared the crypto trader known by the pseudonym Dyme in a post on Dec. 27, and continued:

“Now is not the time to engage in dollar-cost averaging for Bitcoin, perhaps for the next 18 months or so.”

A Kraken survey released on Oct. 7 shows that while 84% of cryptocurrency investors have employed the dollar-cost-averaging (DCA) method at some time, 59% still prioritize it as their main strategy for acquiring cryptocurrencies.

The concept of DCA entails regularly investing a predetermined sum into an asset, thus averaging out the purchase price over both market peaks and troughs.

Speaking to their following of over 64,000 on X, Dyme predicted that in 2025, the altcoin landscape will be “ridiculously active” with high risk/reward prospects in everything from Dogecoin DOGEUSD to Solana SOLUSD and a variety of meme coins.

Nonetheless, Dyme advised current Bitcoin BTCUSD investors to remain committed to their strategy and weather the ups and downs.

The trader noted, “That is if the cycles persist as before.”

Concurring with this perspective, Tyler Durdan, CEO of Soap Capital, suggested on a Dec. 26 X post that the upcoming surge in the market could be quite impressive, saying:

“I’m playing with the possibility that what’s to come might be the last waves, provided that the cycles aren’t obsolete.”

Adam Cochran of Cinnaeamhain Ventures also hinted at agreement, indicating that due to the current makeup of Congress in the US, the creation of a US Bitcoin Strategic Reserve is improbable, which may hinder Bitcoin’s near-term performance against other market players.

“Assets other than Bitcoin stand to gain from regulatory certainty, novel launches, and perhaps a new era of ICOs, sucking liquidity away from BTC,” Cochran mentioned in his Dec. 26 X post.

Shift in U.S. stance towards Bitcoin leadership

Yet, some industry watchers, such as Kristin Smith of the Blockchain Association, believe that the momentum behind Bitcoin isn’t dwindling and that there is still potential for newer investors to benefit in the current cycle.

Smith suggested in a Dec. 26 CNBC interview that Bitcoin’s price is likely to hit $200,000 before it falls to $50,000, which would be an ascent of roughly 108% from its price at the time, based on CoinMarketCap figures.

At the time of the article, Bitcoin’s price was noted at $95,720. A contributor at CryptoQuant named Darkfost recently referred to $95,000 as a “beneficial zone for DCA implementation.”

With the upcoming Donald Trump administration, coupled with a shift in approach from U.S. leadership and a growing number of financial advisors recommending Bitcoin, Smith believes a new influx of capital into Bitcoin will be triggered.

“The trend of increasing retail financial advisors guiding their clients into Bitcoin investments suggests a growing participation for Bitcoin,” Smith mentioned.

She added, “People are keeping their focus on accruing more Bitcoin, not less.”

This content is meant purely for informational purposes and should not be construed as legal or investment advice. The views, opinions, and positions expressed in this article belong solely to the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.