Bill Baruch: With Bitcoin, 'Buy When There's Blood In The Street'

The price of bitcoin peaked in 2017 near $20,000 but traded below $7,500 Monday morning. But according to one expert, an old investing truism applies to the volatile cryptocurrency. 

The Expert

Bill Baruch, president of Blue Line Futures.

The Strategy

The price of bitcoin lost 30 percent last week alone and is down more than 50 percent on the year, leaving many investors questioning how to proceed. The answer is simple, Baruch said: "Buy when there's blood in the streets." 

The Thesis

Bitcoin is now trading near an "ironic" level of $7,700, because it marks the level bitcoin was trading at in late 2017 before its nearly parabolic rise to north of $19,000, Baruch said on CNBC. Investors may want to wait for bitcoin to break the key level of $8,650 and continuously close above this level before pulling the trigger, he said. The next notable figure to watch would be a breakout above $10,000, which is likely to "bring further buying to the table."

Baruch has a near-term upside target potential of $14,500, which would imply a gain of more than 70 percent. Other cryptocurrencies that are expected to move higher include ethereum, NEO, Ripple, Stellar, and VeChain.

"As buyers step back in I believe this trend will continue and I'm watching for these five to gain further ground," Baruch said.

Price Action

Data from CoinMarketCap shows the price of bitcoin trading at $7,085.90 Monday afternoon, down 16.03 percent on the day.

Related Links:

Where Experts Stand On Bitcoin After 40% Plunge

Bitcoin Will Reach $1 Million Per Coin, Says Social Capital Founder