On the 7th of September, crypto markets dipped some 20% in value within a few hours.
A move, it is thought, engineered by more oversized crypto holders to remove leveraged traders.
If that were the case, it seemed to have worked!
That is why with crypto, it is best not to use leverage.
What we are considering is a phased value level purchase—dollar-cost averaging, in other words.
We have three value levels on both Bitcoin and Ethereum (yellow lines).
The initial drop in price on the 7th hit the first level in Ethereum and two lines in Bitcoin.
However, achieving a buy on the second level in Bitcoin was too fleeting.
These anchored value-weighted average price (VWAP) levels are slightly different in each timeframe.
In other words, a trader viewing the buy levels on a daily chart will achieve a different entry-level to a trader in a lower timeframe, such as a 30-minute chart.
However, as we are dollar-cost averaging and with a long term hold in mind, the daily chart is more than suitable for our purpose.
Be patient and wait for staged purchases to be at or below the levels indicated by the yellow VWAP lines.
Take only one entry per level per crypto market.
Buy on the way down rather than up as price might not get to the second or third level. That is up to each investor to decide for themselves. And, of course, we must refer you to our disclaimer page.