I want to preface this post by saying that I have not studied economics, and these are just my blissful wishes.
For a while this little scenario has been playing in my head:
The same goes if we reverse the situation. If I sell 1 Bitcoin at $50k, yes I will have $50k, but if the price increases of Bitcoin to $60k I still have a perceived loss of $10k. The reason I say perceived is because you cannot lose something you never had, right? But some people like me don't experience situations like this as simply perceived loss, for me it's a real loss.
If I decide to buy back Bitcoin with $50k, while the price is $60k, I can only buy 0.83btc, all of a sudden I have a 0.1666 btc perceived loss.
I will have to disagree with this, you cannot have it both ways, you either care about your fiat profits or you care about your bitcoin profits, in the scenario that you are presenting you sold your coins at 50k and that's it, every single movement after that doesn't really concern you in terms of calculating your profits, how can you say that you have a 10k loss when you are holding no bitcoin?
That loss is only in your mind, the only thing that matters is what would you do once the price reaches 60k, will you buy or will you not? If you buy it then it is obvious that you're going to receive less bitcoin but that is not a loss because in the scenario that you are presenting you are caring more about your fiat profits, so as I have said you need to be decide what you care most about fiat or bitcoin? Once you know that you can design strategies to protect one or the other but not both.