Bitcoin’s price action has shifted dramatically, moving away from earlier euphoric highs and entering a dollar-cost averaging (DCA) zone, a region often associated with long-term accumulation opportunities. As sentiment wanes, many analysts see this as a crucial moment for investors, suggesting that the leading cryptocurrency could be poised for another significant rally.
Crypto analyst Ardizor recently highlighted on social media that Bitcoin has reached a familiar DCA zone that has historically signaled the start of major recoveries. This pattern is not new; it often follows a narrative where market participants declare Bitcoin dead, only for the price to stabilize in the DCA region before embarking on a rally that could lead to new all-time highs.
Bitcoin Returns to the Zone Where Fear Usually Peaks
The candlestick chart analyzing Bitcoin’s price movement over the monthly timeframe reveals a striking resemblance to previous market cycles. For instance, in 2019, Bitcoin entered a prolonged DCA accumulation phase after peaking at approximately $19,000 in 2017, which led to a downturn of over 83%. This accumulation zone ultimately paved the way for the rally to the 2021 all-time high near $69,000.
A shorter but structurally similar situation unfolded in 2022 following the collapse of the FTX exchange. Bitcoin plummeted to around $15,500 from its previous peak above $69,000, triggered by forced selling. Yet, the resilient bulls managed to push through the overwhelming fear, resulting in an impressive nearly 600% rally above $100,000, culminating in a peak of over $126,000 in October 2025.
Where Does Bitcoin Go From Here?
The pressing question now is whether Bitcoin can maintain its position within the DCA zone long enough for the market to transition into a bullish cycle. Currently, Bitcoin is trading at approximately $62,800, hovering around a crucial support level identified in the monthly chart. As long as Bitcoin respects this long-term structure, comparisons with the 2019 and 2022 accumulation phases remain valid.
However, bearish pressures are mounting from ETF flows and on-chain indicators. For instance, Bitcoin’s Realized Cap has decreased by about $12 billion from its mid-May peak, while analyses of the PnL Index indicate that Bitcoin has yet to reach a definitive bottom, although it is in a transitional phase.
Despite these challenges, the argument for the DCA zone remains compelling. Historical evidence suggests that significant accumulation zones do not materialize during periods of calm but rather during times of thin liquidity and heightened uncertainty when traders are bracing for further declines.
In conclusion, Bitcoin’s current position within the DCA zone could serve as a launching pad for the next major price rally, reminiscent of past cycles that led to astronomical gains. Investors are closely watching how this narrative unfolds as the market continues to evolve.
