Dollar-cost averaging (DCA) strategy can incur losses when the market enters a downward trend. However, at certain times, it can be very effective if investors choose an appropriate starting point.
Several factors suggest that December may be an ideal time to start this strategy. The following section will explain these factors in detail.
4 Reasons to Start Altcoin DCA in December
Starting the DCA strategy does not guarantee price increases after the first purchase. This approach requires proper capital allocation to ensure that investors do not miss opportunities while securing an optimal entry price.
Declining altcoin trading volume, DCA golden period
The first reason comes from the decline in altcoin trading volume. This reflects a quiet market phase similar to previous market bottoms.
Analysis from DarkPost indicates that when comparing 30-day altcoin trading volume to the annual average, altcoins have shown signs of entering a 'buy zone'.
Charts often indicate market bottoms when 30-day altcoin trading volume falls below the annual average. Such phases can test investor patience.
"If you predict that the upward trend will continue, it is a good time to recommend DCA. It can last for weeks or months, providing ample time to optimize the DCA strategy through well-targeted entry points." – DarkPost opinion
Decreasing trading volume indicates that many sellers have already completed their sales, but market sentiment is weak for recovery. Therefore, the DCA strategy can work well in such situations.
Declining SNS interest, market bottom conditions
The second reason stems from the decrease in mobile phone usage. This indicates a paradoxical signal of potential speculative opportunities.
According to data from Joao Wedsom, CEO of Alphractal, searches for cryptocurrency-related topics, major exchanges like Binance and OKX, and market trackers like CoinMarketCap or CoinGecko have decreased by 70% from the peak in September 2025.
"Historically low social interest has been associated with bear markets, but paradoxically, these periods have also been the best times for speculation when everyone has lost interest." – Joao Wedsom statement
His logic follows the classic mindset of being greedy when others are fearful. Historical data shows that a decrease in interest usually appears near market bottoms. This behavior may be characteristic of the cryptocurrency market.
The cryptocurrency online data platform Santiment also mentions that negative discussions across various platforms often align with market bottoms. This pattern has re-emerged recently.
95% of altcoins trading below 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 historically serves as a significant buy signal.
According to data from the cryptocurrency on-chain platform CryptoQuant, only 5% of altcoins are currently trading above the 200-day SMA. This reflects difficult conditions for altcoin holders, suggesting that many may be experiencing losses.
Historically, when this indicator falls below 5%, the market often forms a bottom and shows strong recovery.
From this perspective, if investors gradually allocate capital and start DCA in these phases, they may generate profits in a few months.
USDT dominance, December adjustment signal
The final reason is reflected in USDT dominance (USDT.D). This reflects the ratio of USDT's total market capitalization. A decrease in USDT.D indicates that investors are using USDT to buy altcoins.
This transition continues to appear in December, with USDT.D retracing from a 6% resistance zone.
According to observations from CrypFlow, the weekly stochastic RSI of USDT.D confirms a bearish crossover.
According to a recent report from BeInCrypto, the total stablecoin market capitalization began to rise again in early December after declining throughout November. This trend reflects an increase in stablecoin accumulation in preparation for buying opportunities.
These four factors indicate that December offers significant conditions for the DCA strategy. However, choosing which altcoins to accumulate presents another challenge. Many experts believe that "the market has changed, and not all altcoins will provide strong returns as seen in previous altcoin seasons." [Source: BeInCrypto report]
