Buy the Bitcoin Dip or Wait It Out? BTC Faces Make-or-Break Levels
Bitcoin (BTC) has tumbled from above $116,000 to hover just above the $110,000 mark, leaving traders and investors at a crossroads: is this a prime dip-buying opportunity, or is it wiser to stay on the sidelines until the dust settles?
Momentum Shifts: Bears in Control
Recent price action shows that Bitcoin is struggling to find its footing.
The 9-day EMA has slipped beneath the 20-day EMA, a sign that short-term momentum is firmly in bearish hands. Each attempt to recover is quickly met with selling pressure, hinting that buyers are not yet confident enough to reverse the trend.
Daily chart for WBTC/USD (Source: GeckoTerminal)
The MACD also signals growing downside momentum, as the histogram widens deeper into negative territory. Meanwhile, the RSI has dropped into the high-30s, reflecting weakening demand. Although this suggests Bitcoin is nearing oversold conditions, it also means there may still be room for sellers to push lower before buyers step back in force.
Bitcoin Support and Resistance: Where the Battle Lies
Bitcoin faces immediate resistance around $110,274 and $111,696. Breaking above these levels would give bulls the chance to aim for $119,841. However, the more likely challenge for the near term lies in defending the key support zones at $105,681, $103,985, and $101,508.
A break below those supports could open the door for deeper declines, while a bounce off these levels might entice bargain hunters to enter the market.
Order Book Signals: Short-Term Clues
The order book highlights a large bid wall at $109,883 (≈$1.17M) that may provide short-term stability. Additional bids around $109,838 and $109,848 add to the near-term cushioning effect. However, if these walls are eaten through, the downside could accelerate.
On the flip side, thick ask walls around $110,000 suggest that any recovery attempt will face immediate resistance. Unless these walls are cleared, upward momentum may stall quickly.
Trading Outlook: Two Possible Plays
For those considering a long entry, the ideal scenario would be waiting for Bitcoin to confirm support near the $105,681–$103,985 zone. A strong bounce from here, combined with oversold signals, could mark a low-risk dip-buying opportunity, with exits near $111,696 or even $119,841 if momentum flips.
Short sellers, however, may find opportunity while BTC trades below $111,696, targeting the deeper support levels for potential exits. The trend currently favors this side of the market until signs of a sustained reversal emerge.
Buy the Dip or Wait It Out?
The current setup suggests caution.
While support levels may tempt dip buyers, bearish momentum remains strong, and resistance overhead is heavy. For aggressive traders, nibbling near support could pay off — but for more conservative investors, patience may be the wiser choice until Bitcoin proves it can reclaim $111,696 with conviction.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
