- Dollar-cost averaging advised as 30-day altcoin trading volume dips below yearly average, hinting at accumulation opportunities.
- Investor caution persists despite favorable metrics, echoing 2023’s delayed but eventual altcoin rebound after prolonged low-volume phases.
Recent trade tensions between the U.S. and China have contributed to declines across global financial markets, including cryptocurrencies. Bitcoin dropped to $74,000, while alternative digital assets faced steeper losses. ETHNews analysts observe that prolonged market pressure may now create conditions for strategic entry points, particularly for altcoins.
CryptoQuant researcher Darkfost highlighted a pattern in altcoin trading volumes that historically precedes price recoveries. A chart comparing 30-day average trading volumes to yearly averages shows the short-term measure has dipped below the long-term trend.
This divergence, last seen in September 2023, occurred just before altcoins began a multi-month climb. Darkfost suggests this signals a potential buying phase.
It might be time to start a DCA strategy on Altcoins.
“We’ve entered a buying zone, which is defined by the 30-day moving average falling below the annual average… last time we reached these levels was in September 2023, right after the bear market ended.” – By @Darkfost_Coc pic.twitter.com/xEHnHD5bg8
— CryptoQuant.com (@cryptoquant_com) April 11, 2025
The analyst recommends a dollar-cost averaging (DCA) approach for altcoin exposure, spreading purchases over time to mitigate volatility risks. Historical data supports this strategy: after similar volume patterns in late 2023, assets like Solana and Polygon gained over 200% within six months. However, current exchange data reveals cautious behavior, with investors hesitating to increase holdings despite lower prices.
Market reactions to geopolitical events often amplify volatility in smaller cryptocurrencies. Altcoins, typically more sensitive to macroeconomic shifts than Bitcoin, have underperformed during recent weeks.
The 30-day volume indicator’s drop below its annual average implies reduced trading activity, which sometimes coincides with price floors. Darkfost notes these periods can extend for weeks but have historically rewarded patient accumulation.
While Bitcoin’s price reflects broader uncertainty, altcoins face dual pressures from both macroeconomic factors and investor risk aversion. The volume-based metric offers a data-driven rationale for strategic positioning, though timing remains unpredictable.
Bitcoin (BTC) is currently trading at $83,732, showing a 5.27% gain over the last 24 hours. After recently dipping to around $74,000, BTC has rebounded strongly, indicating that bullish sentiment remains intact despite recent volatility.
This price movement suggests a recovery from a corrective phase, driven in part by institutional momentum and macroeconomic shifts, including regulatory progress and easing concerns around inflation.
Technically, BTC is approaching a key resistance zone near $86,900. If it breaks through, the next leg could target significantly higher zones, with some analysts pointing to $208,000 based on the Mayer Multiple metric.
However, the overall structure still exhibits consolidation characteristics, and failure to break this resistance could lead to a retest of the lower range between $76,000 and $78,000.
Oscillators are neutral, and moving averages indicate mild bullish momentum building up again. The market is also seeing reduced selling pressure as long-term holders maintain their positions, suggesting strength behind the current rally.
