Bitcoin Near $120K: Should Traders Buy Now or Wait for Pullback?

Bitcoin (BTC) is holding steady near $118,800, just shy of its record highs, leaving traders debating whether to enter the market now or wait for a correction.

Markus Thielen, founder of 10x Research, suggests the ideal entry point lies near former resistance at $111,673, which recently turned into a key support level. “We prefer to see bitcoin retest its breakout level to provide a more favorable risk/reward entry,” Thielen noted. A pullback to this level could allow traders to set tighter stop-losses and aim for higher upside potential.

The risk-reward ratio, a critical metric in trading, compares potential losses to expected gains. Many traders look for setups with at least a 1:2 ratio, which aligns with buying closer to strong support zones. Historically, markets often revisit breakout levels before continuing major rallies, making a dip to $111,673 plausible.

Currently, BTC trades around $119,500, following a 1% rise on Sunday amid reports of a historic U.S.–European Union trade agreement. However, if the anticipated pullback fails to materialize, Thielen advises watching for a confirmed breakout above $120,000. This level represents a descending trendline formed by the July 14 and July 23 highs.

“A sustained move above $120,000 could justify re-entering the trend, though traders should use tighter stop-losses in such conditions,” Thielen added.

With Bitcoin hovering near a psychological barrier, traders must weigh patience against momentum. A retest of $111,673 could offer a safer entry, while a breakout above $120,000 signals renewed bullish strength. As markets remain volatile, risk management and disciplined positioning are crucial for capitalizing on the next move in Bitcoin’s price.