Is Your DCA Strategy Leaving Gains on the Table?

Strategy Details

Pre-Halving Lows¹:

This strategy focuses on accumulating Bitcoin during specific periods (typically 11-19 months) leading up to a Bitcoin halving event. Historically, these pre-halving phases have often represented cyclical market lows, offering potentially favorable entry points.

Pi-Cycle Bottom²:

The Pi-Cycle Bottom indicator uses two long-term moving averages (e.g., 150-day EMA and 471-day SMA multiplied by a factor like 0.745). A crossover where the shorter-term MA (EMA) dips below the longer-term scaled MA (SMA*factor) has historically signaled market bottoms. This strategy invests when this cross occurs and for a few subsequent months.

Puell Multiple³:

The Puell Multiple is calculated by dividing the daily Bitcoin issuance in USD by the 365-day moving average of daily issuance in USD. Values below a certain threshold (e.g., 0.58, historically values like 0.3-0.5) suggest miner revenue is low compared to historical norms, potentially indicating undervaluation and a good buying opportunity.

F&G (Fear & Greed Index)⁴:

The Crypto Fear & Greed Index measures market sentiment. This strategy triggers investments when the index falls to "Extreme Fear" levels (e.g., 15 or below), based on the contrarian principle that market bottoms often coincide with widespread pessimism.

MVRV-Z Score⁵:

The MVRV-Z Score assesses Bitcoin's valuation by comparing its Market Value (market cap) to its Realized Value (value of coins at the time they last moved). A Z-score below a certain threshold (e.g., < 1.4, with values below 0 historically indicating deep undervaluation) suggests Bitcoin might be undervalued relative to its fair value.

50%+ Off ATH⁷:

This strategy focuses on buying opportunities when Bitcoin's price has fallen substantially (e.g., 50% or more) from its previous All-Time High (ATH). Such drawdowns can indicate periods of market capitulation and potential long-term value.