Dollar-Cost Averaging (DCA) strategy can lead to losses when the market shifts into a downturn. However, at certain times, it can be very effective when investors choose the right moment to start.
The factors suggest that December may be an ideal time to start this strategy. The following sections provide a detailed explanation of these factors.
4 reasons to start DCA altcoins from December
Starting the DCA strategy does not guarantee price increases after the first purchase. This approach requires proper capital allocation, enabling investors to avoid missing opportunities and secure optimal purchase prices.
The decrease in altcoin volume creates a golden period for DCA.
The first reason relates to low altcoin trading volume, reflecting a quiet market phase similar to previous market bottoms.
According to Darkfost's analysis, comparing the 30-day altcoin volume (with stablecoin pairs) to the annual average shows that altcoins have shifted into the 'buy zone.'
The chart shows that historical periods when the 30-day altcoin volume fell below the annual average often marked market bottoms. These phases can continue and challenge investors' patience.
"This is a period that encourages the DCA strategy if you trust the continuation of the upward trend. It can last for weeks or even months, allowing ample time to optimize the DCA strategy with carefully selected entry points," Darkfost commented.
A decrease in volume indicates that many sellers have already executed their sales, but market sentiment remains too weak for recovery. For this reason, DCA can work well under such conditions.
A decline in social interest corresponds to market bottom conditions.
The second reason relates to a decline in social interest, as Google Trends shows — a counterintuitive signal that often indicates potential speculative opportunities.
According to Joao Wedson, CEO of Alphractal, cryptocurrency-related searches, major exchanges like Binance or OKX, and market trackers like CoinMarketCap or CoinGecko have decreased by 70% from the September 2025 peak.
"Historically low social interest has been associated with bear markets — but ironically, these periods have been the best times to speculate when everyone else has retreated," Joao Wedson said.
The mindset of 'be greedy when others are fearful' supports his reasoning. Historical data shows that a decline in interest often occurs near market bottoms. This behavior appears to be characteristic of cryptocurrency markets.
Santiment also notes that negative discussion across various platforms, such as X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster, often coincides with market bottoms. This pattern has emerged again recently.
95% of altcoins are trading below the 200-day SMA.
The third reason comes from technical indicators. About 95% of altcoins are trading below the 200-day Simple Moving Average (SMA), which is historically a significant buy signal.
CryptoQuant data shows that only 5% of altcoins are trading above the 200-day SMA. This figure reflects harsh conditions for altcoin holders, many of whom are likely suffering losses in many cases.
Historically, when this metric falls below 5%, the markets often form a bottom and later show strong recoveries.
From this perspective, investors who gradually allocate capital and start the DCA strategy during such phases may see profits after a few months.
USDT dominance shows signs of correction in December.
The final reason comes from USDT Dominance (USDT.D), which reflects USDT's share of the total market capitalization. When USDT.D declines, it indicates that investors are using USDT to buy altcoins.
This change appears to occur in December when USDT.D retreats from the 6% resistance area.
CrypFlow's observation also shows that the weekly stochastic RSI of USDT.D confirms a downward crossover.
A recent report from BeInCrypto states that the total market cap of stablecoin markets began to rise again at the beginning of December after declining throughout November. This trend reflects an increasing accumulation of stablecoins for buying opportunities.
These four factors indicate that December offers several key conditions for the DCA strategy. However, selecting altcoins to accumulate presents its own challenges. Many experts believe that the markets have changed, and not all altcoins will yield strong profits like in previous altcoin seasons.
