It goes like this:
1) Sell at the bottom of a dip, place buy orders $5-$10 lower
2) Curse yourself while BTCUSD goes up $5-$10 in the following week.
3) Say to yourself "BTC will never go as low as my buy orders again... darn. I should move my buy orders up and take the loss."
4)
MOST IMPORTANT STEP: Do NOT move your buy orders up.
5) Wait another week or two, and watch your buy orders get filled.
Repeat this process. Only works if you are willing to accept that we are in a short/mid-term bear market. Which we are.
Of course, you still need to pick a realistic bottom. Look at the '11 bubble. We started sub $0.50, went up to $32, then slowwwwwwly crashed down to $2. That's several hundreds of % above the starting point, depending on what price you pick for the starting point. (0.25? 0.50? 0.75? $1.00? All good guesses.) This bubble, well, it started at $13, went to $266, quickly crashed to just above $50, dead cat bounced to $160ish, and since then it's been on a slow descent. There's no reason to believe the bottom will be $5 or $13, it's more likely to be $32, $50. If we are just making blind extrapolations and assuming that this bear market will follow the EXACT same course as the '11 bubble, in the EXACT same length of time, then the bottom will be in the $24-$50 range and we will reach it in, who knows, 6-8 months.
And remember, the bottom that everyone picks, is the bottom that we haven't a chance in hell of reaching.
And when EVERYONE decides we're in a bear market, the bull market will rear its beautiful head once more.
Better option: Long LTC.
