Bitcoin High-Level Fluctuation: Beware of Pullback Risks and Grasp Key Support and Resistance
Bitcoin has recently experienced a high-level pullback but was quickly pulled back strongly, reopening profit margins. However, the higher it goes, the more one needs to be wary of a sudden market reversal risk.
Key Resistance and Breakout Signals
Bitcoin failed to effectively break through around $120,200 and subsequently experienced a pullback. In the next two days, it is crucial to pay attention to the resistance performance in the $118,500 - $119,000 range. If it can stabilize in this area, the market is expected to challenge the reversal point again; conversely, if it cannot break through, the market may continue to test downward.
Support Area and Potential Opportunities
The first support level below is in the $114,000 - $115,000 range. If this area is lost, the market may further test down to $110,000 - $112,000. After a short-term consolidation, Bitcoin may welcome the final wave of upward movement, but one must be wary of a subsequent large-scale pullback.
Strategic Thinking: Balancing Risk and Reward
While it is tempting to buy low, as prices rise, the risk-reward ratio is changing. Investors need to reassess their positions and respond flexibly to potential market turning points. At this stage, it is important to seize the opportunity for a rise while also preparing for potential pullbacks.
