In general, you want to make trades that have greater than 1:1 risk:reward. If your risk of loss is equal to your risk of gain then it's not worthwhile to make a trade as your probability based profit will be zero.

Looking here at the recent dip, assuming it holds, with a high of $9200 and a low of $7900 and an entry averaging (i.e. it could be multiple trades) $8050 you can see that at $8250 you'd make a profit, but the risk:reward would only be 1:1 based on the assumption that downside risk was $7900. If downside risk were lower than $7900 than you'd have less than 1 for risk:reward which would be decidedly a bad entry target.

Given that you want to enter trades where you have positive risk reward there should be a reasonable expectation of exiting at higher than 1 ratio.

Given that the move of 9200 to 7900 was about 14% and assuming a 50% probability of retracing to half that price movement, we'd be at around $8550, which is an area of support/resistance , making it a fairly likely target to hit.

Given that the 200 EMA is around $8900 and price action has moved through that zone every day during this recent draw down, there could be greater than 50% probability that the price will end back between $8550 and $8900. This isn't a precise analysis because my math skills are only so-so.

Setting an exit target of roughly $8500 would provide a 2.25 risk:reward ratio, satisfying the requirements for a profitable trade that showed a strong enough incentive for the trade to execute.

The key here is to understand what the probabilities are like for each price target and exit point with a bit of trading psychology and understanding of the market action (i.e. panic sellers vs. trading bots) thrown in.