This On-Chain Strategy Tells You Exactly When to Buy More BTC

Bitcoin (BTC) has been in consolidation mode for a few weeks, and analysts believe this is the right time to keep accumulating the crypto asset.

A report by the market analytics firm CryptoQuant explained a smart dollar-cost averaging (DCA) method based on Realized Price signals. This is to help investors accumulate BTC to make the most of the asset’s price appreciation.

When to Buy More BTC

DCA seeks to minimize the impact of market volatility on large crypto acquisitions. It involves 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 investing. This method helps investors to avoid entering the market during tops or periods of fear of missing out (FOMO). It also enables market participants to take advantage of bottoms despite fearful sentiment, reversing emotional trading cycles and leading to long-term success.

CryptoQuant’s DCA recommends buying BTC when its price falls below the one-week to one-month realized price. At such levels, short-term holders are often under increased selling pressure as they are in the red. The strategy executes hourly purchases during such periods, keeping the BTC and USD cost basis closer.

More Accumulation Needed

At press time, the one-week to one-month realized price stood around $117,700, while the price of BTC hovered around $117,760. This indicates that the market is still in the accumulation zone, although the price is nearing the realized threshold. As long as bitcoin’s price stays below the $117,700 level, investors can continue accumulating.

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 with behavioral on-chain metrics. By buying during fear-driven dips and selling into strength, it builds a more resilient and optimized portfolio over time,” BorisVest added.

Meanwhile, traders have been taking advantage of bitcoin’s price movement to grow their holdings. CryptoPotato reported that they bought roughly 120,000 BTC as bitcoin recovered from $112,000 to $116,000 over the last two days. However, the market needs stronger accumulation to form sustainable support.