Here Is the Bitcoin Price Level That Could Be an Attractive Entry Point for BTC Bulls

As bitcoin BTC$68,818.88 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 on 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.