Effectiveness of DCA from the Bottom of the Bear market ( Low of 2022)

“DCA is king” is one of the few statements thrown around everyday. But is DCA really the king when market resumes its upward trajectory after hitting the bottom?

I have compared the top 15 crypto coins ignoring the stable coins when BTC hit a low of 15682 on 12 November 2022.

The analysis is to see how well coins have performed if you have DCA’ed from bottom. Some of these coins have exited top 15 and new ones have entered.

DCA amount is 100 $ every month starting from 11th October 2022 (1 month before BTC hit a low of 15682 ) and ending on 11 October 2023 for a total of 12 months.

Total amount invested : 1200 $.

No of Months : 12

https://preview.redd.it/sexm8mgimrtb1.jpg?width=1306&format=pjpg&auto=webp&s=5245742d18f50f641465e76d15c190528d786c0c

Notable points

1. Only 5 coins are in green if regular DCA was followed during the uptrend.
2. The coin which has lost most value is MATIC with 32.59 % loss.
3. XRP and BTC are still the preferred coins to DCA in either from the bottom or from ATH.

Conclusion : Yes, DCA is definitely the king if you are entering the market when it is at bottom with some caveats. Not all coins may be in the green if the market has slumped by 10 % after BTC has rallied around 100% from the low of 15682.

You can find my post where I have analysed the returns if DCA is started from ATH here