It has been some time since our last Bitcoin trade. As a reminder, here is our Crypto Trading Plan of Action
On our pullback allocation, our objective was to purchase a total of 19 units at 3 different levels. For this purchase, I am going to cut that to two equal amounts at two different levels.
The first level we want to purchase is 8530.
There are a few reasons we want to purhcase in that general area.
1- it is approx 50% retrace of the recent rally off the April low (actual number is 8225O
2- it is just below the rising 50 DMA of 8270
3- the measured move from high 9900 to 5/9 low is ~9000, the first leg dropped 900points. The high of the bounce from 9K went to 9400. We subtract 900 from 9400 and come up with 8500 measured move objective.
4- the April 15-17 highs were found ~8450
We are buying in an approximate area, if you wish to try to be more accurate, that is fine.