Bitcoin Price Fails at $110K: Trading Strategies from a Technical Perspective

Key Support and Resistance Levels

Figure:https://www.gate.com/trade/BTC_USDT

Bitcoin has attempted to break through the $110,000 resistance multiple times, but has faced selling pressure near $110,500, passively retreating to the $107,500–$108,000 range. Meanwhile, the $107,500 level serves as short-term support, and if this level is lost, the price may further test the $106,000 support area.

Technical signal interpretation

1. Volume Matching: The trading volume when challenging $110K did not significantly increase, indicating limited buying enthusiasm; a lack of volume support during a breakout often leads to false breakouts.
2. Relative Strength Index (RSI): The RSI indicator shows a decline when approaching the overbought zone (70), suggesting insufficient upward momentum, and it is advisable to wait for the indicator to pull back before observing the next divergence opportunity.
3. Moving Average Support: The price is currently above the 50-day moving average. If it remains above this moving average, it indicates that the medium-term trend is still bullish; if it breaks below, further pullback risks should be monitored.

Beginner Trading Strategies

• Dollar-Cost Averaging: You can buy in batches in the range of $107,500–$108,000 and reduce your position in batches in the range of $110,000–$110,500 to lower the risk of a single trade.
• Stop-loss setting: It is recommended to set the stop-loss level below $106,000. If the price falls below this support, you can exit in a timely manner to avoid greater losses.
• Observation of trading volume: When the next challenge of $110K occurs, if it is accompanied by a significant increase in volume, consider adding to positions; if the volume remains weak, it is advisable to wait and see.
• Risk warning: The risk is higher in volatile markets, beginners should control their positions and it is not advisable to heavily invest at high levels.