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

As Bitcoin recovers from its slip below $100,000, an analyst recommended BTC traders to “buy the dip, in stages.” Standard Chartered Head of Digital Assets Research, Geoff Kendrick, advised traders to determine the maximum amount they can invest in Bitcoin and then follow three key steps for staged buying.

1. First step: Traders should buy 25% of their maximum investment now, as Kendrick noted that “the dip below 100K overnight well may be the last one ever.”
2. Second step: Traders should purchase another 25% of their max investment if Friday’s ‘close’ exceeds $103,000.
3. Final step: Traders should invest the remaining 50% of their max amount “if/when the Bitcoin-gold ratio goes back above 30.”

The Bitcoin-gold ratio has declined to 25 after peaking for the year at 38.6 on January 5, 2025. It nearly reclaimed this high point in August, reaching 36.5, but the ratio has steadily dropped since August 12 as gold prices surged. Recently, gold prices have shown signs of decline, positioning Bitcoin for a better comparison, but price volatility has brought uncertainty.

Users on the platform Myriad increasingly believe that gold will outperform Bitcoin this year. At the time of writing, users estimate an 82% chance that gold finishes stronger. Year-to-date, gold has gained 66.5%, while Bitcoin’s recent drop leaves it 10.5% higher than its January 1 starting price.

Analysts suggested that the U.S. government shutdown, now the longest on record, has diverted cash away from institutions that could have otherwise used it in lending, equities, or cryptocurrencies. However, BitMEX analysts indicated that when the shutdown ends and the Treasury resumes spending, a recovery could happen quickly.

BitMEX analysts predicted that this influx of liquidity would lead to a “massive liquidity ‘snap-back’” and trigger a strong relief rally. This aligns closely with Bitcoin’s historical seasonal end-of-year strength, presenting optimism for a significant rebound in its price.