Toggle fold on current line -- cursor position?

is it possible to collapse the paragraph with the cursor anywhere in the paragraph instead of only in the title? For example:

Paragraph title

asdfasdf
asdfasdf
asdfasdf
asdfasfd

I only know I can use toggle fold on current line (only with my curse in the line of the title but not “asdf”) or fold all heading and list (if I have multiple levels of headings, it would be a pain to go back).

Or is it possible to collapse only a certain level of headings.

You can only collapse something if it has at least one sub element. To use a hotkey, you have to be on an element that can be collapsed (the heading, not paragraph in this case). If you want this feature to be added to Obsidian, you can open a feature request. Hope this helps!