While the correction phase in the cryptocurrency market might be unsettling news for some investors, it can also be viewed as a good buying opportunity. With the latest setbacks in the markets, cryptocurrency prices declined substantially. Bitcoin, for example, was valued at around $34,364 at the time of writing. That’s down from its peak of around $64,000 back in April.
Several Bitcoin investors wait for Bitcoin to become affordable, in order to buy the dip. However, this can be questioned, depending on what trading plan these actions are based on. According to trader and economist, Alex Kruger,
BTC at 60K: "this is going to 100K, strong people buy strength, time to buy"
BTC at 50K: "the pullback I wanted, buying more"
BTC at 40K: "once in a lifetime opportunity, buying more"
BTC at 30K: "just sold everything, will rebuy lower or once uptrend confirmed above 42K"
— Alex Krüger (@krugermacro) July 3, 2021
Continuing the same thread, he further questioned,
“Is that a trading plan you would make before the fact for an unlevered mid to long term position if the underlying thesis remains relatively unchanged?”
Well, in relation to having a strategy, trader and analyst Kaleo dished out his plan of action that incorporated selling Bitcoin once it hit a certain level.
Basically my game plan is to be Uber bullish until Bitcoin breaks above $150K. I’ll start exiting there and flip Uber bearish when it breaks back below $150K.
— K A L E O (@CryptoKaleo) July 2, 2021
Further, he projected a massive surge of about 532% (upper limit) for Bitcoin from its current value by the end of the year.
“Still think it tops out w/a nice wick around $185K – $215K but my goal isn’t to snipe the top,” he said.
He noted that he will start scaling out once Bitcoin broke below his price target.
Kaleo was vocal about his stance towards the largest cryptocurrency in the past too. Irrespective of Bitcoin trading sideways, he was bullish about its future, which is also portrayed in this chart.
Bitcoin vs the tech industry (NASDAQ 100),
The analyst further added,
“Pay attention to the two red boxes. Bitcoin will catch up and close the gap to the growth we’ve seen in tech, and when it does – it’ll happen rapidly.”
A look at the Fear and Greed index revealed that fear was the predominant sentiment at the time of writing. Addressing the fear prevailing among investors Kaleo stated,
People a couple of months ago literally said they would sell their homes, exhaust their savings, and use their children as collateral to buy more #Bitcoin under $40K if they got the chance.
Those same people have been given their opportunity, but today they refuse to touch it.
— K A L E O (@CryptoKaleo) July 4, 2021