- Crypto Dan said trying to catch Bitcoin’s absolute bottom is the wrong approach.
- In a bear market, selling by buyers who entered at higher prices shifts supply to long-term-oriented investors, lowering the average purchase price.
- He said a strategy of gradually accumulating Bitcoin during such a phase is often favorable over the long term.
Forecast Trend Report by Period
As Bitcoin’s bear market drags on, gradually accumulating the token may be a better long-term strategy than trying to pinpoint the exact bottom, according to a CryptoQuant Quicktake analysis published on Aug. 17.
Crypto Dan, an analyst cited in the report, wrote that trying to catch Bitcoin’s absolute bottom is the wrong approach.
As the bear market persists, the average cost basis of Bitcoin holders begins to fall at a certain point, he said. That happens as investors who bought at higher prices sell at a loss, with those holdings passing to investors with a stronger long-term holding bias.
In that phase, a strategy of gradually building a Bitcoin position is often advantageous over the long term.
The window of opportunity usually lasts longer than most investors think, he added. But paradoxically, that is also when most investors leave the market.
