That's correct. It's important to understand the tax brackets on long term capital gains. The first $47,000 of long term capital gains (in the US) is taxed at 0%. So by selling that amount of bitcoin, you realize a gain, but it's a 0% taxed gain. Then when you buy back, your cost basis is set to the new purchase price. When you eventually sell you are taxed from the new tax basis.

It's a way to protecting $47,000 a year from taxes, every year.