Bitcoin Price Levels to Watch as Key $100K Level Remains in Sight
Bitcoin (BTCUSD) remains in focus to start the week as the cryptocurrency sits on the precipice of crossing the $100,000 mark for the first time.
After rising to around $99,800 on Friday afternoon, the digital asset’s price eased slightly in weekend trading and was trading at just below $98,000 recently.
Since Donald Trump’s decisive election victory on November 5, Bitcoin has surged around 40% amid expectations of a crypto-friendly administration and Congress. Year to date, the cryptocurrency has soared about 130%.
Below, we analyze the technicals on Bitcoin’s chart and identify important price levels that investors may be watching out for.
Since breaking out above an eight-month trading range, Bitcoin’s price has continued to trend sharply higher, with a bullish golden cross in late October confirming the new uptrend.
Early last week, the cryptocurrency’s price broke out from a pennant pattern, signaling a continuation of its strong bullish move.
Importantly, trading volumes remain at their highest levels since March, indicating institutional adoption by larger market players, such as asset managers and hedge funds.
Let’s apply technical analysis to project where Bitcoin’s price may be headed next and identify several important support levels to watch during profit-taking periods.
Investors can use a bars pattern, a chart-based tool, for projecting how Bitcoin’s continuation move may play out.
To apply the technique, we take the cryptocurrency's trending price bars that preceded the pennant and reposition them from the pattern’s top trendline. This predicts a bullish price target of around $118,000, a level the price may test before moving into a consolidation phase.
During pullbacks, it’s worth initially
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