Great article that should be read by anybody who wants to buy some bitcoin or other crypto currencies. The main take away is to use the DCA method to take advantage of the volatility in the market. I have been buying bitcoins since the start of the year myself, and its so much better to spread out your purchases across multiple months instead of buying everything at once. Who would have thought in January that bitcoins are going to drop down to 17,000 USD. The timing issue is one the biggest challenges in trading and with DCA we need to worry less about buying at the right price. Also DCA is well used strategy in stock trading for years.
Your example is the proof that sometimes DCA backfires when there’s clear bearish market trend while you keep buying for more. The price obviously hit the peak on 67K and the bullish is already ended the moment the price touch below 50% of the ATH. There’s a perfect time to apply DCA if you want to use it properly instead of randomly use it on a clear start of bearish trend for long term.
I believe you lose a lot even if you do DCA if you keep buying since January until now. DCA is perfect if there’s already a sign of recovery in the longer time frame because you can guarantee that the price will be moving upward in long term.