The Dollar-Cost Averaging (DCA) strategy can lead to losses when entering a market downtrend. However, at certain times, this strategy may be highly effective when investors choose the right timing to start.
Several factors indicate that December may be an opportune time to start using this strategy. The next section will provide a detailed explanation of these factors.
4 reasons to start DCA with Altcoins from December.
Starting a DCA strategy does not guarantee that prices will rise after the first purchase. This approach requires proper capital allocation so that investors do not miss opportunities and can ensure the best entry prices into the market.
Altcoin trading volume has decreased, creating a golden opportunity for DCA.
The first reason stems from decreased altcoin trading volume, which reflects a quiet period similar to past markets that have hit bottoms.
According to Darkfost's analysis, the comparison between 30-day altcoin volume (against stablecoin pairs) and the annual average shows that altcoins have entered the 'buy zone.'
The chart shows that historical periods when altcoin volume over 30 days is below the annual average often mark market bottoms. These phases may continue and test investors' patience.
This period supports DCA if you anticipate that the upward trend will continue. It is a phase that may take weeks or even months, allowing ample time to adjust the DCA strategy with suitable entry points, Darkfost commented.
The decline in volume indicates that many sellers have completed their selling activities, but market sentiment is still too weak for a recovery. Therefore, DCA can work well in such conditions.
Declining social interest corresponds with market conditions reaching a bottom.
The second reason comes from decreased social interest, as shown in Google Trends, which is a signal that often indicates speculative opportunities.
Data from Joao Wedson, CEO of Alphractal, shows that searches for crypto-related topics, major trading markets like Binance or OKX, and market trackers like CoinMarketCap or CoinGecko have decreased by 70% from the peak in September 2025.
Joao Wedson stated that historically, low social interest has been associated with bear markets, but conversely, this period is often the best time to predict when no one is paying attention.
His reasoning aligns with the classic notion that one should be brave when others are fearful. Historical data suggests that reduced interest often appears near market bottoms. This behavior seems to be characteristic of the crypto market.
Santiment also noted that various negative discussions on platforms like X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster are often associated with market bottoms, and this pattern has resurfaced during this time.
95% of Altcoins trade below the 200-Day SMA.
The third reason comes from technical indicators. Approximately 95% of altcoins trade below the 200-day moving average, which is a historically significant buy signal.
Data from CryptoQuant shows that only 5% of altcoins trade above the 200-day moving average. This figure reflects the challenging conditions for many altcoin holders, who may experience losses.
Historically, when this indicator drops below 5%, the market often hits a bottom and subsequently recovers strongly.
In this perspective, investors who gradually invest and start a DCA strategy during this period may see profits after several months.
The market dominance of USDT shows signs of adjustment in December.
The final reason comes from USDT Dominance (USDT.D), which reflects the share of USDT in the total market value. When USDT.D decreases, it means investors are using USDT to purchase altcoins.
This change seems to occur in December when USDT.D adjusts from the 6% resistance zone.
CrypFlow's observations also indicate that the weekly stochastic RSI of USDT.D confirms a bearish cross.
A recent report from BeInCrypto indicates that the total market value of stablecoins began to increase in early December after declining throughout November. This trend reflects increased accumulation of stablecoins in preparation for buying opportunities.
These four factors suggest that December has several critical conditions for the DCA strategy. However, selecting altcoins to accumulate remains a separate challenge. Many experts believe the market has changed, and not all altcoins will yield strong profits as seen in previous altcoin seasons.