When you have chosen the DCA approach to accumulate Bitcoin, that means you choose to regularly invest in Bitcoin, regardless of what the price is on the market, assuming the price of Bitcoin is still at a price that makes sense for you to buy. For example, the current Bitcoin price is in the $20k-$30k range, so that is the price you can buy.
The best DCA approach os to buy at the lower level and sell at the top of the price, it not good to buy at the top because doing so will affect your overall DCA strategy since you will eventually be at lose in the shot while when the price of bitcoin will nose dive to correct the market at that point.
And more also DCA approach is a parallel market approach and doesn't face one direction of buying Bitcoin alon but also you need to do both ways to get the best out of the approach which is buying and selling gaving DCA as you tool at every moment of action.
Indeed, it is the best DCA approach. But no one knows when the price will be at the bottom level. But if you refer to buying at the lower level and selling at the upper price, that's not a DCA strategy. That is trading.
Whereas DCA, as far as I know, is investing for a certain period, for example, 1 year, and you set to buy every week or month with the same amount of money for 1 year. So whatever Bitcoin price is when you buy, that is the price you get. If you average it, your average purchase price will probably be smaller. The goal of investing in Bitcoin is to collect as much Bitcoin as possible and not to sell it again soon.
As long as the price is still in that price range, you will still be doing DCA every week or month. But when the price goes to $ 30k- $ 40k, you have to rearrange the strategy but you may still do DCA every week. At least that's what I did with a small capital to collect Bitcoin.
Yea using smaller amount to DCA when price is relatively high is a good approach, at least you will nkt be left behind when if the price of Bitcoin continues to rise and also you will not be in too much lose if the price correct back suddenly.
DCA's approach is not to chase price increases but we routinely buy Bitcoin using the same amount of money every week or every month. And it also has nothing to do with changing market prices because you only focus on collecting Bitcoins.
And because your selling target is long-term, you don't need to worry about price movements. If it's still within that price range, you can continue the DCA until you feel you have enough Bitcoin or it's time to hold on and wait for the Bitcoin price to increase. But DCA strategy varies from one person to another and there are differences in the use of capital too. So as long as you still feel capable of doing DCA, just do it. But if you start feeling inadequate, it's better to stop doing DCA and look for other ways.
DCA approach is best for the long term only if you are approaching the market from the Bitcoin accumulation journey, This is long-term based and the approach will help you in collecting enough bitcoin in the long run.
But also we have some bitcoin speculators, a trader who uses the DCA approach to analyse and deal on the market price at each point by buying low and selling high.
You are not depending on Bitcoin speculators if you take the DCA approach. Your target lies not in price changes but in Bitcoin accumulation. By accumulating Bitcoin by buying Bitcoin every week or month, you can have more Bitcoin and not be selling it anytime soon. That's distinctly different from trading, where you buy low and sell high.
