Recently, the price of Bitcoin has experienced a pullback and consolidation, with market sentiment appearing somewhat cautious. From a technical perspective, BTC encountered resistance above $120,000 and has now fallen below the $120,000 support level. This suggests that we may enter a period of mean reversion consolidation rather than a strong trend.

According to market data analysis, bullish strength still exists, especially as retail investors show strong resilience. However, for investors opening positions at the support level, it is advisable to adopt a more cautious profit-taking strategy and patiently wait for the consolidation or washout to end.

It is worth noting that the rise on the morning of August 11 is likely to mark a short-term peak, which often indicates that the market will enter a consolidation range next. From a 4-hour perspective, the market has already experienced a strong decline, suggesting that supply pressure still exists even above $120,000. Therefore, we may see a second wave of slight pullbacks or consolidation.

For trading strategies, you can focus on the support area between $117,500 and $116,000. The first long entry point can be considered near $117,500, which is both a pain point for long position liquidation and the convergence of trend line and pattern support. The second long entry opportunity may appear around $115,400, which is a potential pin bar location. The profit target can be set slightly below the upper edge of the consolidation range, which is $120,000.

In a volatile market, it is recommended to adopt a more flexible trading strategy: go long at the support level and take profit at the resistance level. Remember, in this market environment, overly chasing large movements may bring unnecessary risks. Staying calm and rational, and timely adjusting strategies according to market changes, is the wise choice.