One of the biggest challenges in Bitcoin investing is determining the right time to buy. Investors often enter the market during tops due to FOMO, and avoid it during bottoms out of fear. However, long-term success requires reversing this emotional cycle.
Smart DCA (Dollar-Cost Averaging) offers a data-driven solution. This method recommends buying Bitcoin when the price drops below the 1-week to 1-month realized price. At these levels, short-term holders are usually underwater, leading to increased sell pressure. Smart DCA activates hourly purchases during such periods, helping to bring the BTC and USD cost basis closer together.
Currently, the 1W–1M realized price stands at around $117,700. As long as the market price stays below this level, the strategy signals continued accumulation. Once the price climbs above this threshold, it's time to gradually sell the BTC acquired during the DCA phase — using the same disciplined approach.
For example, with Bitcoin currently trading at $116,000, we’re still in the accumulation zone, though the price is approaching the realized threshold. A breakout above this level would present a good opportunity to realize profits, while remaining below it means it’s still a time to build long-term positions.
In essence, Smart DCA removes emotion from the decision-making process and replaces it with behavioral on-chain metrics. By buying during fear-driven dips and selling into strength, it builds a more resilient and optimized portfolio over time.
📊 1W–1M Realized Price: $117,700
📉 Current BTC Price: $116,000
✅ Signal: Accumulation Still Active
Written by BorisVest