Results From Dollar Cost Averaging From the $60,000 Peak

Ugly Old Goat
3 min readSep 29, 2022

The two previous peaks were followed by a 1-year decline. The first peak took one year to return to black. The second peak took six months to return to black.

Note: I started this new dollar-cost-averaging study below on the October 2021 peak.

http://www.coindesk.com/price

However, this peak had a double top so I also did this study from the April 2021 peak. We have declined 18 months losing nearly 50% by dollar-cost-averaging.

Now let us compare this data with the previous two peaks.

Note: The dollar-cost-averaging study below was started on December 2017 peak to reflect the very worst timing for Dollar-Cost-Averaging. The market declined for one-year losing over 50% and it took another six months for DCA to be in the black.

http://www.coindesk.com/price

Note: The dollar-cost-averaging study below was started at the January 2014 peak to reflect the very worst timing for Dollar-Cost-Averaging. The market declined for 1 year losing over 50% in equity. It then took another year for DCA to be in the black.

http://www.coindesk.com/price

Conclusion: Bitcoin has experienced a one-year decline from its 2021 peak. This matches the decline durations from the 2014 and 2017 peaks as well as the percentage decline. Past performance is no guarantee of future performance. The 2014 bear market took one year to recover using DCA. The 2017 bear market took six months to recover using DCA.

I hope this helps.

UGLY OLD GOAT

Here are links to other relevant articles.

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