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Is this a signal?
The BTC/GOLD exchange rate pair has officially started long-term trading below the MA200 on the weekly chart, and historically, all periods when this index was below the MA200 have been the best times to dollar-cost average into BTC.
However, this indicator also shows a clear weakening trend, and it seems this time the index will stay below the MA200 for a longer period. Therefore, if you want to start dollar-cost averaging, you can adopt a time-weighted investment approach.
For example:
Taking the previous bear market as an example, the exchange rate index stayed below the MA200 for nearly 300 days. If this time lasts longer, the best strategy is to plan for a worst-case scenario of 300 or even 500 days. For the first 100 days, invest 0.1% daily; then, for the next 100 days, invest 0.2% daily; and so on.
If this dollar-cost averaging period lasts 400 days, you can buy 100% of your planned investment funds and ensure that the average price is near the lowest point within two years.