The Wolf of All Streets Highlights the Effectiveness of DCA in Bitcoin Investing, Even for Those Who Started at the Market Peak

Investors who began purchasing $100 worth of Bitcoin weekly when it reached its previous all-time high of $69,000 would have invested a total of $15,200

CryptoSlate Top News: Scott Melker Highlights Benefits of Dollar-Cost Averaging in Bitcoin Investing, Even at Market Peak

Scott Melker, a popular cryptocurrency trader and influencer, recently highlighted the effectiveness of dollar-cost averaging (DCA) in Bitcoin investing, even for those who started at the market peak.

According to Melker’s analysis, investors who began purchasing $100 worth of Bitcoin weekly when it reached its previous all-time high of $69,000 would have invested a total of $15,200 over 152 weeks.

If they sold their entire position at the current price of $42,258, they would net a total of $31,473—a 107.06% gain on their initial investment. This strategy demonstrates Bitcoin’s potential for long-term investors, as it spends limited time at its highest prices and provides extended periods for accumulation during lower price ranges.

Highlighting the market peaks and troughs over the past few years, Melker’s analysis underscores the benefits of a long-term approach to Bitcoin investing. This strategy aligns with the broader trend of increasing institutional interest and mainstream adoption of Bitcoin.

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Bitcoin price history and analysis: what to expect next

CryptoSlate Top News: Bitcoin Hits Support from Key Level at Short-Term Holder Cost Basis

Bitcoin price experienced a slight recovery on March 13 as it approached the crucial support level at the short-term holder cost basis. This level has served as a significant support zone during previous bear markets.

As of March 13, BTC price recovered to $42,258, up by 0.34% in the past 24 hours and by 6.33% over the last seven days. According to data from CoinMarketCap, the apex crypto’s trading volume reached $63.44 billion, while its market capitalization stood at $809.32 billion.

The short-term holder realized loss metric, which measures the average loss realized by short-term holders, provides further insight into this support level. It indicates that short-term holders, on average, purchased their Bitcoin holdings at a higher price.

This metric serves as a crucial support level, indicating that short-term holders are likely to sell their Bitcoin holdings at a loss if the price drops below their purchase price. Such a scenario would lead to a decrease in selling pressure and, ultimately, support the price from further decline.

CryptoSlate Top News: Bitcoin ETFs See $52.9 Million Outflow as Ethereum ETFs Attract $19.8 Million Inflow

CryptoSlate Top News: Bitcoin Continues to Rise, Hitting Support from Key Level at Short-Term Holder Cost Basis

Fresh out of a bear market, Bitcoin price seems to be headed for another bull run. This time around, cryptoSlate Top News will be keeping you up to date on the latest news, price movements, and institutional adoption.

Institutions appear to be flocking back to Bitcoin as its price recovers from the lows of 2022. However, the road to recovery has been bumpy, with BTC encountering several key support and resistance levels along the way.

As Bitcoin price approached its previous all-time high, it faced increasing resistance at several crucial levels. One of these levels, identified by CryptoSlate, is the short-term holder realized loss metric.

This metric measures the average loss realized by short-term holders and provides insight into a key support level for Bitcoin price. Short-term holders are typically defined as those who have held their BTC for less than six months.

According to this metric, short-term holders, on average, purchased their Bitcoin holdings at a higher price. If the price drops below their purchase price, they will incur a loss on their investment.

This metric serves as a crucial support level, indicating that short-term holders are likely to sell their Bitcoin holdings at a loss if the price drops below their purchase price. Such a scenario would lead to a decrease in selling pressure and, ultimately, support the price from further decline.

Moreover, this metric aligns with the short-term holder cost basis, which also indicates a key support level for BTC price. This level is crucial for understanding the behavior of short-term holders in the market.

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