Here is the Bitcoin Price Level That Could be an Attractive Entry Point for BTC Bulls

As bitcoin

holds near its record highs, traders looking to join the uptrend may be facing a dilemma: should they enter now, or wait for a more favorable pullback?

According to Markus Thielen, founder of 10x Research, a pullback to the former resistance-turned-support level of the May high, under $112,000, would be the best entry point.

"We would prefer to see bitcoin retest its $111,673 breakout level to provide a more favorable risk/reward entry point," Thielen said in a note to clients Monday.

The risk-reward ratio compares the potential loss of an investment to its potential profit, helping traders determine whether the potential gains justify the associated risks. Traders typically target a risk-reward ratio of at least 1:2, necessitating bullish entries close to key support levels, like the $111,673 in BTC's case.

It's common for markets to revisit the breakout points before staging bigger bull runs, meaning a potential pullback to $111,673 cannot be ruled out. As of writing, BTC traded flat at around $119,500, having risen over 1% on Sunday amid reports that the U.S. had reached the largest-ever trade deal with the European Union.

But what if the meaningful pullback doesn't unfold? In that case, the best entry would be above $120,000, marking a breakout above the trendline connecting July 14 and July 23 highs.

"A break above the descending trendline, particularly a sustained move above $120,000, could justify re-engaging with the trend, though it would warrant unusually tight stop-losses," Thielen said.