Dollar-cost averaging (DCA) can lead to losses when the market enters a downtrend. However, there are scenarios where it can be very effective if started at the right time.
There are several factors suggesting that December is an ideal time to start this strategy. The following section will explain these factors in detail.
Four reasons to start DCA for altcoins in December
Starting the DCA strategy does not guarantee that prices will rise after the first purchase. This method requires proper capital allocation to secure the optimal entry price without missing investment opportunities.
DCA opportunities due to decreasing altcoin trading volume
The first reason is the decrease in altcoin trading volume. This reflects a quiet market phase similar to past market bottoms.
According to Darkfost's analysis, a comparison of 30-day altcoin trading volume (against stablecoin pairs) and the annual average indicates that altcoins have entered the 'buy zone'.
This chart shows that historically, periods when 30-day altcoin trading volume falls below the annual average often indicate market bottoms. These phases can persist and may test investors' patience.
"If you're betting on the continuation of a bullish trend, now is the time to encourage DCA. It can last from weeks to months, and there is enough time to optimize the DCA strategy at well-aimed entry points," commented Darkfost.
The decrease in trading volume suggests that many sellers have already completed their selling activities, but market sentiment is still too weak to recover. Therefore, DCA can be effective in such situations.
Decline in social interest coinciding with market bottoms
The second reason is the decrease in social interest reflected in Google Trends. This often signals paradoxical potential speculative opportunities.
According to CEO Joao Wedson of Alphractal, searches related to cryptocurrency topics, major exchanges like Binance and OKX, and market trackers like CoinMarketCap and CoinGecko have decreased by 70% from the peak in September 2025.
"Historically, low social interest has been associated with bear markets, but ironically, these periods have also been the best times to speculate when no one else is interested," said Joao Wedson.
His thoughts align with the classic idea of being greedy when others are fearful. Historical data shows that low interest tends to coincide with market bottoms. This trend seems characteristic of the cryptocurrency market.
Santiment also points out that negative discussions on various platforms like X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster often coincide with market bottoms. This pattern has recently re-emerged.
95% of altcoins are below the 200-day SMA
The third reason lies in technical indicators. About 95% of altcoins are trading below the 200-day simple moving average (SMA), which is historically a significant buy signal.
According to CryptoQuant data, only 5% of altcoins are currently trading above the 200-day SMA. This reflects a tough situation for altcoin holders, with many potentially experiencing losses.
Historically, when this indicator falls below 5%, the market often forms a bottom and subsequently experiences a strong recovery.
From this perspective, investors gradually allocating capital and starting DCA at such stages may have the potential to profit months later.
USDT dominance, signs of correction in December
The final reason comes from USDT dominance (USDT.D). It reflects USDT's share of the total market capitalization. A decrease in USDT.D indicates that investors are using USDT to purchase altcoins.
This shift seems to be occurring in December as USDT.D retreats from the 6% resistance zone.
According to observations from CrypFlow, the weekly stochastic RSI of USDT.D confirms a bearish cross.
A recent report from BeInCrypto points out that after a decline in November, the total market capitalization of stablecoins began to rise again in early December. This trend reflects an increase in the accumulation of stablecoins in preparation for buying opportunities.
These four factors indicate that December offers multiple critical conditions for DCA strategies. However, the choice of which altcoins to accumulate is a separate challenge. Many experts believe the market has changed, and not all altcoins will yield strong profits like in past altcoin seasons.