Dollar-cost averaging (DCA) strategies can incur losses when the market enters a downtrend. However, at certain stages, it can be very effective if investors choose the right time to start.
Several factors suggest that December may be an ideal time to launch this strategy. The following sections discuss these factors in more detail.
4 reasons to start DCA to altcoins from December
Starting a DCA strategy does not guarantee that prices will increase after your initial purchase. This approach requires appropriate capital allocation so that investors can seize opportunities and secure optimal entry prices.
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Decline in altcoin trading volume creates a golden age for DCA
The first reason is the decline in altcoin trading volume, which reflects a quiet market phase similar to the previous market bottom.
According to Darkhost’s analysis, a comparison of 30-day altcoin volume (vs. stablecoin pairs) and annual average shows that altcoins have entered the “buy zone.”
This graph shows that historical periods when 30-day altcoin volume was below the annual average often marked market bottoms. These stages are likely to continue and may test investors’ patience.
“This is a period to encourage DCA if you are betting on the continuation of the bullish trend. This phase can last for weeks or even months, giving you enough time to optimize your DCA strategy with well-targeted entry points,” Dirkforst commented.
Although the decline in volume suggests that many sellers have already concluded their sales activities, market sentiment is still too weak to recover. As a result, DCA can perform well in such situations.
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Decline in social interest coincides with market bottom
The second reason stems from a decline in social interest, as reflected in Google Trends. This is a counterintuitive signal of a potential speculative opportunity.
Data from Alpharactal CEO Joao Wedson shows that searches for crypto-related topics, major exchanges like Binance and OKX, and market trackers like CoinMarketCap and CoinGecko are down 70% from their peak in September 2025.
“Historically, low social interest has been associated with bear markets, but ironically this period has also been a great time to speculate while others are indifferent,” said Joanne Wesson.
His reasoning is consistent with the classical idea that people become greedy when others are afraid. Historical data shows that we generally see a decline in interest near the bottom of the market. This behavior seems to be a feature of the virtual currency market.
Santiment also points out that negative discussions across various platforms, including X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster, often coincide with market bottoms. This pattern has recently resurfaced.
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95% of altcoins are trading below the 200-day SMA
The third reason comes from technical indicators. Approximately 95% of altcoins trade below their 200-day simple moving average (SMA), which is a historically important buy signal.
According to CryptoQuant data, only 5% of altcoins are currently trading above their 200-day SMA. This number reflects a tough situation for altcoin holders, many of whom are likely experiencing losses.
Historically, when this indicator falls below 5%, the market forms a bottom, often followed by a strong recovery.
From this point of view, investors allocate funds in stages and starting DCA in such phases may generate profits after a few months.
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USDT dominance shows signs of correction in December
The final reason is due to USDT Dominance (USDT.D), which reflects USDT’s share of the total market capitalization. When USDT.D decreases, it indicates that investors are using USDT to buy altcoins.
This change appears to be occurring in December as USDT.D retreats from the 6% resistance zone.
Crypflow observations also indicate that USDT.D’s weekly stochastic RSI supports a bearish cross.
According to a recent report from BeInCrypto, stablecoin market capitalization began to rise again in early December after declining throughout November. This trend reflects the increasing accumulation of stablecoins in preparation for purchase opportunities.
These four factors indicate that December presents several important conditions for DCA strategies. However, choosing which altcoins to accumulate comes with another challenge. Many experts believe that the market is changing and that not all altcoins will have the same strong gains as previous altcoin seasons.
