Why Bitcoin Traders Should 'Buy the Dip, in Stages'

Geoff Kendrick, a Standard Chartered analyst, advises Bitcoin traders to adopt a staged approach to buying the dip in Bitcoin prices, especially as the asset has dipped below $100,000. He suggests a three-stage strategy: first, invest 25% of the maximum allowable amount now, as the recent dip may not repeat. Secondly, if Bitcoin closes above $103,000, purchase an additional 25%. Finally, the remaining 50% should be invested when the Bitcoin-to-gold ratio recovers above 30. Currently, this ratio is at 25, down from its yearly high of 38.6 in January. The market's volatility has been linked to the ongoing U.S. government shutdown, which has decreased liquidity among institutional investors. Analysts expect a sharp recovery once the shutdown ends, suggesting that Bitcoin's historical seasonal strength could lead to a significant price rebound toward year-end.

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