And this is the function of running a DCA strategy because the price of Bitcoin is not easy to predict in the near future, but in the long term the price of Bitcoin will rise even if there is a decline.
We may be able to speculate the price of it but if it's about predicting it properly and accurately, one thing we can say is that it's always been unpredictable.
Basically, no one can accurately predict the price of bitcoin. Because Bitcoin is an investment asset/payment tool that is bought and sold by enthusiasts/investors. Therefore, the price of bitcoin cannot be predicted with 100% accuracy. Because basically everything is related to the psychology or habits of bitcoin investors themselves. So when we predict the price of Bitcoin, for example in the context of the habits of bitcoin investors. Examples like this
"Oh, usually after the halving cycle, the price of bitcoin always experiences a very high increase and sometimes bitcoin reaches a new ATH."Or if predicted through the psychology of bitcoin investors. For example
"Wow, there is new news, reportedly Elon will buy a lot of bitcoin at the end of this year. So the price of bitcoin will definitely experience a big increase.”So these two examples are an illustration of bitcoin predictions from the habits and psychology of bitcoin investors. But what I will conclude here, are these two examples always 100% correct or not? Personally, I don't think that's always true. Because if you refer to the first example when the bitcoin halving occurred, it is true that until now after that there has always been a very high increase in the price of bitcoin. But that is in the context of all bitcoin investors being in good financial condition. But what if the majority of bitcoin investors during the bitcoin halving experience financial problems, resulting in not many investing in bitcoin. If this happens, it is very likely that the price of bitcoin will not rise, but will actually fall.
Then if we refer to the second example, regarding the psychology of bitcoin investors who heard the news that Elon would buy large amounts of bitcoin. In this context it is even worse than the first context (habit). Because in a psychological context what is expected from bitcoin investors is individuals. So basically the possibility of this happening is not very big.
For this reason, the price of bitcoin cannot be predicted with certainty. And why DCA would be great to use in this situation.