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This year starting phase initiated the boost for bitcoin prices and then the rally continued for long time and the proof for this is exchange witness huge user demanding bitcoin and then Tesla announced investing 42000 bitcoins worth $1.5 billion approximately and the next phase was coinbase listing and some more factors like corona virus pandemic also hit hard and force people to invest in some kind of good financial asset with high returns and btc seems feasible to them.It was around $68k-$69k range which marked its ATH this year but the analysis for year end was somehow not accurate and we witnessed huge dips and they went to below $29k once and then jumped back to $52k around but then again as you said second dip was there which carried it to $42k again.
I would phrase that slightly differently because we had a high of $64,895 in mid April 2021 before the dip down to $28,600 (that more or less lasted May/June/July and of course using Bitstamp as the reference and a 56% correction), and then our second peak of the ATH of $69k started to push UP in early August and reached its peak on November 10 before we dipped back down to the most recent correction of $41,967 (39%).. The particular numbers or even the exact percentages of the dip are not that material, but there is a bit of materiality to recognize and appreciate that our second peak in November was a bit more than $4k higher than the first peak in April.
As far as DCA and longer term goes, maybe those details do not matter too much except just showing that we could have further UP coming.. and surely, I would consider anyone in their first 4 years of BTC accumulation (especially if they are using relatively modest amounts) to be potentially very early in a longer term play... of course, individuals can do whatever they want in terms of perhaps having longer term intentions but it can be very difficult to NOT be tempted in terms of dipping into your stash along the way.. and so in that regard, there can be many disappointments along the way with people NOT having patience to HOLD for longer terms and really start to experience the greater kinds of compounding of wealth that is more likely to come with longer passage of time (of course, again not guaranteeed, which probably makes some people anxious to lock in their fiat gainz maybe even sooner than they should).
But they all are normal in course of bitcoin journey if we have a closer look at its 13 years journey then we don't find it hard to control our sentiments.Suppose there is holder from 2017 crash which was somewhat major crash in bitcoin when they went to $3k from $19800 ATH of 2017 as they fell about 85% of the value but those who have hold it over all these years till now are still at profit so even if they panic sell they already gain profits out of it.But for me I am into long term investment as said before also and will not get hurt with any of the dips because in the end it will rise and profits will be delivered along with the interest of all these years and then this regret feeling will be gone also.
It seems to be good that you are studying some of the history to be able to verify that sometimes the shorter periods can be kind of ambiguous regarding how much profits have been made and they might not even be very high profits, but with the passage of time, there have been a lot of examples of considerable amounts of profits, so even if the magnitude of the numbers do not play out the same, there should surely be a lot of people who are able to profit in very decent ways so long as they have some long term patience and are able to really show it through their actions too..
We also see that buying at the very top of the 2017 price rise at nearly $20k would still have been profitable, but a DCA strategy would likely have been even more profitable, because the BTC price ONLY peaked for a short period of time, and if you kept a $100 per week through that whole UP and DOWN period through the whole year and especially into the whole of 2018, your average cost per BTC would have been well below $10k per BTC... so when the first price rise of late 2020 to early 2021 came, you would have gone pretty quickly from nearly break even levels to 6.5x in profits, and then bounced back down to 3x in profits, which still would not have been a bad place to be.. including right now being about in 5x profits.
You have presented the nice spreadsheet for all the DCA investment for $100 week and see how you could easily Manage to accumulate more bitcoins each time and at the last we will have more then you always mention
I am likely going to add a few more columns to that spreadsheet and submit it again.. I have a couple things that I am trying to do in the coming days.. but I am thinking to resubmit it.
As far as the column that currently shows DCA Added at $2,756, the value contained therein takes the amount per week ($100) * 26 and then multiplies by the amount of interest for the six month period (*1.06). So there is an assumption of both contributing $100 per week and also getting a 6% return on the whole period for those contributions (which might be too bold of a presumption).. I still consider an overall presumption of slightly more than 12% per year CAGR is reasonable.. even though it could take 4-8 years to really see that average out and likely even outperform the projections --- but I still like to have relatively conservative projections - even though they might not seem so conservative in the short-run.. but even with conservative projections, you can still see that it tends to take a while for the amount of value to build up, but if you continue to project it out... the amounts get larger, and larger and larger.
You must have 0.02BTC with you
The DCA investment has helped me a lot and will continue the same for long till i have funds with me to support my habit to survive the future.
For sure, each of us has to attempt to be conservative in our BTC accumulation targets, and for sure I like to attempt to be able to relate to some of the difficulties of newbies to just get started in building their portfolios.. and sometimes newbies are way too impatience in terms of wanting to get rich quick.. and getting rich likely is a process that takes a decently long time.. especially if you are not engaging in various gambling techniques that put your principle at risk too frequently and then sooner or later those guys end up with nothing because they are always betting with their principle/capital so they never get anywhere... those have been my observations of a lot of people who never really end up building up their investment portfolios because they cannot stop themselves from gambling with too much of it../.. so for me it seems much more important to have a solid plan rather than relying too much on gambling and luck.