December: The Perfect Time to Start Dollar-Cost Averaging into Altcoins

Dollar-Cost Averaging (DCA) can lead to losses during market downturns, yet in certain conditions, it proves to be an effective strategy, especially when investors identify the right moment to start. This article explores why December might be a great time to begin this investment approach.

Key Takeaways

Falling Altcoin Volume: Low trading volumes could suggest a market bottom, making it an opportune time for DCA.
Declining Social Interest: A drop in searches for cryptocurrency topics can indicate favorable speculative opportunities.
Technical Indicators: Most altcoins are trading below significant moving averages, often signaling a buying opportunity.
USDT Dominance: A decrease in USDT’s market share may indicate investors are favoring altcoins, especially as market conditions shift.

Why December Could Be the Best Time for DCA Into Altcoins

Beginning a Dollar-Cost Averaging (DCA) strategy does not ensure that prices will rise after your first investment. It's crucial to allocate capital wisely to avoid missing out on opportunities and to secure the best entry points available.

1. Decreasing Trading Volume

The first reason to consider DCA in December is the ongoing decline in altcoin trading volume, which hints at a quieter market phase akin to prior market bottoms. According to an analysis by Darkfost, comparing the 30-day altcoin trading volume (against stablecoin pairs) with the yearly average shows that altcoins have entered a "buy zone."

The chart indicates that past instances where 30-day altcoin volumes fell below the yearly average often marked the lows of the market. These periods can test investors' patience and can last for weeks or even months. Darkfost points out, "This is a period that encourages DCA if you’re betting on a continuation of the bullish trend. It provides ample time to fine-tune a DCA strategy with targeted entry points."

Falling volumes indicate that many sellers have completed their selling, yet the market sentiment remains too weak for a recovery, making DCA a viable strategy in these conditions.

2. Drop in Social Interest

The second reason involves the reduction in social interest, as evidenced by Google Trends, which may seem counterintuitive but can indicate potential speculation opportunities. Data provided by Joao Wedson, CEO of Alphractal, reveals that searches around crypto topics, leading exchanges like Binance or OKX, and tools such as CoinMarketCap or CoinGecko have plummeted by 70% since peaking in September 2025.

Joao Wedson explains, "Historically, low social interest has been associated with bear markets; however, these periods have also presented some of the best times to speculate when everyone else is disengaged." This aligns with the classic advice to be greedy when others are fearful. Historical data demonstrate that declining interest frequently occurs near market bottoms, highlighting a recurring trend in the cryptocurrency space.

Moreover, Santiment has observed that negative discussions across platforms like Twitter, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster often correspond with market lows—an observable pattern that has re-emerged recently.

3. Positive Technical Indicators

The third reason arises from key technical indicators. Currently, approximately 95% of altcoins are trading below the 200-day Simple Moving Average (SMA), a crucial buy signal historically.

Data from CryptoQuant indicates that merely 5% of altcoins currently surpass the 200-day SMA. This scenario implies significant challenges for long-term altcoin holders, many likely facing losses. However, historically, when this percentage drops below 5%, the market often establishes a bottom and subsequently rebounds forcefully.

From this perspective, investors who gradually allocate capital and initiate a DCA strategy during these downturns might see profitability in a few months.

4. Shifts in USDT Dominance

The last reason relates to USDT Dominance (USDT.D), which indicates the proportion of USDT within the total market capitalization. A decline in USDT.D suggests that investors are using USDT to purchase altcoins.

This downward trend appears to be unfolding in December as USDT.D retreats from a 6% resistance level, indicating potential momentum for altcoins. According to CrypFlow’s analysis, each time USDT.D reaches this level, momentum falters and capital appears to rotate into altcoins.

Additionally, CrypFlow has flagged a bearish cross in the weekly stochastic RSI of USDT.D. A recent report from BeInCrypto illustrates that the total stablecoin market capitalization started to rise again at the beginning of December after a drop in November, signaling increasing accumulation of stablecoins in anticipation of buying opportunities.

Conclusion

These four factors suggest that December presents several favorable conditions for implementing a DCA strategy into altcoins. However, identifying which altcoins to buy remains a distinct challenge, as many experts believe the market has evolved, and not all altcoins will yield substantial gains like those witnessed in past altcoin seasons.