Bitcoin Drops to $109K: Buy the Dip or Stay Cautious? Beginner’s Guide
1. Price Status and Short-term Signals
The current price of Bitcoin is fluctuating around $109K, having retraced from previous highs and testing key support; several market stations and technical platforms indicate that BTC is consolidating in this range, with market sentiment being relatively cautious in the short term.
2. Support/Resistance and Possible Paths
- If it holds above $109K: In the short term, it is expected to rebound under bullish absorption, initially looking at the resistance level of $113K, and if it breaks through, there is a chance to test $118K~$120K.
- If it falls below $109K: the probability of retracement to $105K or even lower will increase.
The key is to observe the trading volume and the daily closing position; a steady daily closing above the support is more credible.
3. Capital Dynamics and Key Events (Including Expiry Risks)
Recently, there has been a large-scale expiration of options and derivatives. Such events often cause extreme volatility or liquidity gaps around the expiration date, and short-term traders should remain vigilant. At the same time, reports indicate that buying pressure has accelerated during the pullback (Buy the Dips), which suggests that the market is not uniformly bearish, and a short-term rebound is still possible.
4. Newbie Practical Tips: Position, Stop Loss, Batch Strategy
- Position Control: It is recommended that the total position does not exceed 10%~20% of the acceptable loss.
- Enter in batches: The first time can be a small position to test the waters, if it holds then gradually increase the position.
- Stop Loss and Take Profit: Set clear stop loss (for example, below $105K) and distinguish between long-term holdings and short-term holdings.
- Information filtering: Avoid being influenced by short-term news sentiments and focus on key economic data and institutional flows.
5. Conclusion
Around $109K, the market has both Buy the Dips and profit-taking pressure. For Newbies, prioritizing stability and discipline is key: small positions, gradual buying, strict stop-losses, and focusing on medium to long-term trends rather than short-term noise.