DCA Indicator explained (for Bitcoin)


Recently, the DCA Indicator on Bitcoin turned positive. Only four times in Bitcoin's history has this indicator turned positive, each time followed by a bull market.

Find out what the DCA Indicator says and why it could be important for future crypto bull markets in this article.

What is the DCA Indicator?

The "daily" DCA Indicator monitors the potential profit or loss of buyers who bought a constant amount of Bitcoin every day for the past year (365 days).

So if you bought bitcoin daily using the DCA method over the past year bitcoin, you should be in profit. Also with our Crypto DCA Calculator you can see that you are currently in profit.

DCA Indicator for Bitcoin

Origins of the DCA Indicator

Investor Mohit Sorout made sure the term gained notoriety with a tweet. He even goes as far as to assume that this is "The mother of all Bitcoin bull signals".

According to his observation, the crossing of the DCA indicator into positive always generated for a subsequent bull market. Exactly four times this crossing has occurred in the past:

  • 2015: followed by a bull market with a bitcoin increase of 7400%.
  • 2019: Followed by a bull market with a bitcoin increase of 160%.
  • 2020: Following this a bull market with a bitcoin increase of 640%.
  • 2023: ?

Only in the middle of 2022 the calculation did not work out, when in the crypto bear market despite positive DCA Indicator came to a downturn to a new low.