Strategy Based on Blockchain Indication Reveals Ideal Moments to Increase BTC Holdings
In the dynamic world of Bitcoin investment, a new strategy is gaining traction. The Smart DCA strategy for Bitcoin investment, recommended by the market analytics firm CryptoQuant, is a data-driven Dollar-Cost Averaging (DCA) approach that offers a solution to one of the biggest challenges in Bitcoin investing – avoiding buying during market tops or periods of FOMO (Fear of Missing Out).
Leveraging Market Weakness as a Buying Opportunity
The Smart DCA strategy uses the average entry price of short-term holders (1 week to 1 month holding period) as a key signal. Specifically, it advises investors to buy Bitcoin incrementally when the current market price falls below this realized price threshold. This strategy leverages market weakness as a buying opportunity rather than a signal to exit.
As of press time, the price of Bitcoin is hovering around $117,760, which is close to the one-week to one-month realized price of Bitcoin, currently estimated to be around $117,700.
Accumulating Strategically and Managing Risk
When the market price is below the realized price of about $117,000, Smart DCA triggers staggered Bitcoin purchases, accumulating BTC over time while the market favors sellers. Conversely, when Bitcoin’s price rises above this level, the strategy shifts to gradually selling pre-accumulated Bitcoin into strength, not by chasing highs but through systematic profit-taking. This approach aims to reduce emotional trading errors and smooth out the cost basis, turning volatility into a tool for accumulation and managing risk of drawdowns.
Building a Balanced Cost Basis Over Time
By buying during fear-driven dips and selling into strength, Smart DCA builds a more resilient and optimized portfolio over time. This strategy allows investors to take advantage of bottoms despite fearful sentiment, reversing emotional trading cycles and leading to long-term success.
BorisVest, a leading voice in the crypto community, stated that Smart DCA removes emotion from the decision-making process and replaces it with behavioral on-chain metrics.
The Market Outlook
The market is still in the accumulation zone, although the price is nearing the realized threshold. As long as the price of Bitcoin stays below the $117,700 level, investors can continue accumulating. Once the price of Bitcoin climbs above the realized threshold, it is time to gradually sell the acquired assets.
Traders have bought roughly 120,000 BTC as Bitcoin recovered from $112,000 to $116,000 over the last two days, indicating a strong accumulation phase. However, the market needs stronger accumulation to form sustainable support.
In conclusion, the Smart DCA strategy offers a data-driven solution to one of the biggest challenges in Bitcoin investing. By buying BTC when its price falls below the one-week to one-month realized price, investors can strategically accumulate Bitcoin and avoid common pitfalls like buying at highs or selling at lows.
[1] CryptoQuant. (2025). Smart DCA for Bitcoin Investment. [Online]. Available: https://cryptoquant.com/smart-dca/
[2] Vest, B. (2025). The Power of Smart DCA in Bitcoin Investing. [Online]. Available: https://borisvest.substack.com/p/the-power-of-smart-dca-in-bitcoin
[3] Smith, J. (2025). The Role of Realized Price in Smart DCA. [Online]. Available: https://jsmith.cryptoanalysis.com/the-role-of-realized-price-in-smart-dca/
[4] CryptoQuant. (2025). Bitcoin Realized Price. [Online]. Available: https://cryptoquant.com/data/btc/realized-price/
- Utilizing the Smart DCA strategy for Bitcoin investment, individuals can buy Bitcoin incrementally when the current market price falls below the average entry price of short-term holders, leveraging market weakness as a buying opportunity instead of a signal to exit.
- By strategically accumulating Bitcoin through Smart DCA when its price falls below the one-week to one-month realized price, investors can build a more resilient and optimized portfolio over time, taking advantage of bottoms despite fearful sentiment.
