Crypto analyst Merlijn has revealed that Bitcoin has just re-entered the DCA zone, indicating it’s a good time to buy BTC. The leading crypto is already staging another rebound, rising to the psychological $70,000, which has so far proved to be a major resistance level. 

Bitcoin Reenters DCA Zone As Price Eyes Another Rally

In an X post, Merlijn stated that Bitcoin has just entered the DCA zone on the rainbow chart and that BTC is now back in the DCA zone. He noted that a massive rally has followed every time this has happened. At the same time, this is when retail investors have panicked and sold. The analyst added that this chart has never been wrong. 

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In another X post, Merlijn stated that Bitcoin has reached a critical level, especially as it continues to trade within a tight range between $60,000 and $70,000. His accompanying chart showed that BTC could rally above $120,000 if it holds this support level. However, there is the possibility of a larger decline if it fails to hold this current range. 

The analyst also revealed that Bitcoin is mirroring the 2021 top exactly with the same sequence, lower highs, and the same structure. He noted that 2021 ended with one final flush before the recovery. Merlijn said the $60,000 level is the last line of defense, and a hold above it would mean buyers are taking control. However, a drop below this level would put liquidity clusters below as the next targets. 

Bitcoin saw a violent recovery following the final flush below, and the analyst is confident that this time won’t be different. Crypto analysts like Benjamin Cowen have predicted that BTC could recover by the second half of this year as part of the 4-year cycle. 

Peter Brandt Predicts A Breakout For BTC

Veteran trader Peter Brandt has predicted that Bitcoin could break out to the upside. In an X post, he said, alluding to BTC’s daily and weekly charts, that “the Big Banana is forming a Little Banana — and it indicates there is about to be a Banana Split.” His accompanying chart showed that the flagship crypto could rally to $82,500 by April. 

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In the long term, Brandt predicted that Bitcoin could rally to $120,000 and possibly $280,000. His prediction comes just days after he admitted that BTC may be in the midst of a bullish reversal. The veteran trader said that he viewed Bitcoin’s rally to $74,000 back then as potentially a significant change in price behavior since the October top last year. 

At the time of writing, the Bitcoin price is trading at around $69,900, up over 3% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Pngtree, chart from Tradingview.com

• Bitflow launches Automated Dollar-Cost Averaging (DCA) for Bitcoin and Runes investments on Stacks.
• The AI-powered DCA enables trustless, recurring investments.
• Future plans include adding yield strategies and cross-layer flows.

Bitflow, a decentralized exchange built on the Stacks ecosystem, has unveiled Automated Dollar-Cost Averaging (DCA), a groundbreaking feature that introduces AI-driven investment strategies to Bitcoin and its associated assets.

The automated DCA allows users to automate recurring purchases of Bitcoin (BTC), stablecoins, Stacks’ native STX token, sBTC, and popular Runes tokens like $DOG, all while retaining complete control over their funds.

Designed to simplify and enhance participation in the growing Bitcoin-native economy, Bitflow’s latest offering marks a significant milestone in decentralized finance (DeFi) on the Stacks Layer 2 network.

Simplifying Bitcoin DeFi investment with automation

At the heart of the Automated Dollar-Cost Averaging (DCA) is Bitflow Keepers, an intelligent automation engine that powers the DCA feature. This technology enables trustless, recurring transactions without requiring users to time the market or execute trades manually.

By supporting a wide range of assets, including SIP-10 tokens and the memecoin sensation $DOG (DOG•GO•TO•THE•MOON), Bitflow ensures that users can diversify their portfolios seamlessly.

For the first time, DeFi enthusiasts on Stacks can program their investment strategies, transforming Bitcoin into a dynamic, yield-generating asset.

Particularly, Bitflow’s non-custodial design keeps transactions fully onchain, providing transparency and security while eliminating dependence on third-party intermediaries.

Dylan Floyd, Bitflow’s Co-Founder and Lead Developer, emphasized the transformative potential of this feature, noting that Bitcoin DeFi is entering a new era of automation, where users can harness advanced tools to grow their holdings efficiently.

Notably, the Automated DCA feature is the first step in a roadmap aimed at integrating AI-driven automation into DeFi. Upcoming enhancements will include automated yield farming strategies, enabling users to optimize returns on BTC-based assets without constant oversight.

Plans are also in place for market-triggered swaps, which will allow traders to set conditions for executing transactions based on price movements or volatility, adding a layer of sophistication to Bitcoin trading.

Additionally, Bitflow intends to improve liquidity by facilitating seamless asset transfers between Bitcoin’s Layer 1 and Stacks’ Layer 2, bridging the gap between the two ecosystems.

This ambitious agenda underscores Bitflow’s role as a pioneer in the Stacks ecosystem, where it serves as a liquidity hub for trading Bitcoin assets.

By incorporating Runes and SIP-10 tokens into its decentralized exchange, Bitflow is broadening the scope of Bitcoin-native finance, appealing to both seasoned traders and newcomers looking for efficient ways to engage with the market.

The XRP price has entered what is regarded as the Dollar Cost Averaging (DCA) ranging zone, according to crypto analyst Egrag. While the digital asset’s price oscillates within a critical zone, the analyst maintains a bullish stance on its future trajectory.

XRP Price Enters DCA Zone

Egrag stated via a post on X, “XRP Color Code (Update): My Stance Forged in the Fires of Conviction: Let me say it 1 million times that I’m still bullish AF, so ease up on the DMs assuming I’ve switched my stance. Remember, markets move in waves, and I’m here to present the short-term moves because, let’s face it, 80% want to reach Valhalla without dying.”

The analyst’s latest technical analysis reveals that the previous support level at $0.66 proved to be weaker than anticipated, leading to a shift in the XRP price’s movement into a ranging zone. “$0.66 wasn’t a solid support, as I’ve mentioned before. XRP is in the ‘ranging’ zone, so the DCA opportunity is open,” Egrag stated.

The analyst’s chart exhibits a descending triangle pattern breaking downwards, indicating potential bearishness in the short term. However, Egrag highlights the importance of the $0.50 mark as a “robust support.” He asserts that the price “won’t dip below $0.50—it’s a pivotal price point.”

The above 1-hour chart shows that the price has now been rejected several times at the falling (red) trend line. If this momentum is maintained, XRP could drop further and could find first support near $0.57. If this support also breaks, the $0.51 mark could be the most crucial turning point.

For Egrag, the zone between $0.5738 and $0.5119 is the “wicking” zone, meaning that the price could swiftly dip into this zone. However, if the price drops below $0.5119, it would enter the “red flag” zone of Egrag’s chart, potentially invalidating the entire prediction.

The Fibonacci retracement levels on Egrag’s 3-day chart suggest significant resistance and support zones. The 0.236 level at approximately $0.7409 and the 0.382 level at about $0.6432 may act as resistance in a bullish scenario, while the 0.5 level at $0.5738 and the 0.618 level at $0.5119 could provide support if bearish momentum continues.

Notably, Egrag’s commentary doesn’t shy away from conviction, “XRP is transforming the way value moves in this digital age. So, it’s crucial to understand what you hodl. Otherwise, I might have to break out the block button for those not willing to learn on how markets move and what XRP or XRPL is achieving. I’m staying true to my beliefs, and if that’s not your vibe, it’s cool to step away from following me.”

Criticism For ‘Stubborn View’

Despite facing criticism from a user comparing the XRP price performance to that of other cryptocurrencies like Solana (SOL) and Chainlink (LINK), Egrag defended the long-term vision for XRP, highlighting its value proposition. He responded, “Appreciate your input, but I’m not pursuing 300% or 500% gains in projects I lack conviction in. My focus is on generational wealth. Imagine understanding gold will reach $2000, and having the chance to acquire it at $0.5.”

The critic replied, “XRP holders are not diamond hands.. Just very stubborn people hoping to be able to sell it at the price they bought. Be happy if it reaches 1$ again.” Undeterred, Egrag concluded, “Indeed, TESLA investors weren’t stubborn; they envisioned the future. The same principle applies to FANGMAN companies. Bookmark this: XRP, the first digital asset with regulatory clarity, and anticipate Ripple, as a company, surpassing the collective value of the FANGMAN entities.”

At press time, XRP traded at $0.6118.

Featured image from iStock, chart from TradingView.com

Applying a Dollar Cost Average (DCA) method can be smart for investors looking to profit from the crypto markets. Yesterday’s trade session witnessed a brilliant price recovery from Bitcoin after it reclaimed the $30,000 level, pushing some Altcoins to the upside.

While the bulls basked in the glory of their supposed win and retaliation, BTC Bears decided to drop the ball again in today’s trade session with a slightly over 3% drop.

Several Altcoins, including Ethereum, have recorded losses as BTC struggles in price, trading slightly above the $29,000 price region. While market sentiments may fluctuate, employing a dollar-cost average strategy can be the close-to-perfect strategy to profit from these BTC rallies.

Applying A DCA Strategy To Bitcoin

Bitcoin started 2023 on a good note as it has produced four consecutive monthly green candles and a rally that broke past $30,000 for the first time since June 2022.

However, a Forbes report called for a $10,000 Bitcoin price prediction in the first quarter of 2023. Crypto investors who took the call and waited missed out on Bitcoin’s rally or had to buy at higher entry points. This is why DCA strategies are necessary not to miss out on future price bottoms and asset rallies.

Dollar-cost averaging (DCA) is an investment strategy smart investors use to buy into an asset using a fixed amount of capital at different time intervals.

Regardless of market ups and downs movements, this strategy is utilized and employed by investors to profit from potential price bottoms and rallies in the future. As a case study, Bitcoin is a popular digital asset and cryptocurrency known for its high price volatility and movements in the crypto and financial markets.

Right from its creation as a cryptocurrency, it has experienced multiple bear and bull cycles which commonly sees it trading at high peaks (bull markets) and lows (bear market).

Every trader wishes to accurately time these bottoms and peaks and take profitable trade actions, but this is almost impossible, as it were unless a DCA strategy is applied.

Crypto Investors Are Still Greedy

Bitcoin’s fear and greed index still shows that while a retracement is seen in the price of Bitcoin today, investors are still greedy.

A report shows that the current greed level for BTC at $29,274 is at 63, which is a relatively high amount of greed among crypto investors.

This indicates that investors are still buying BTC at the current price for which it is trading. On the flip side, a general rule of thumb is that extreme greed could indicate a possible price retracement, while extreme fear presents buy opportunities in the markets. At the time of writing, Bitcoin is seen trading at $29,163. 

BTCUSD| Source: BTCUSD on TradingView

Featured Image from Istock, charts from TradingView.com