Watch These Bitcoin Price Levels As Cryptocurrency Soars Above $100,000

investopedia.com:

Bitcoin (BTCUSD) soared above $100,000 for the first time late Wednesday as investors bet that the incoming Trump administration and Congress will support policies that benefit the cryptocurrency market. 

Wednesday's rally followed news that President-elect Donald Trump named crypto enthusiast Paul Atkins to lead the Securities and Exchange Commission (SEC). Atkins would replace crypto critic Garry Gensler, who said he would step down in January.

Bitcoin was recently trading at $103,000, up from around $95,000 before news of the SEC nomination. Since the election, Bitcoin has surged more than 45% as investors bid up the digital asset on expectations of more crypto-friendly policies.

Below, we take a closer look at the technicals on Bitcoin’s chart and point out important price levels to watch out for.

With its move above $100,000, Bitcoin has broken out above a newly formed pennant, a chart pattern that signals a continuation of the legacy cryptocurrency’s current move higher.

It’s also worth pointing out that the 50-day moving average (MA) crossed above the 200-day MA back in late October to form a golden cross, a bullish signal that underpins the cryptocurrency’s strong uptrend.

While the relative strength index (RSI) confirms bullish price momentum with a reading above 70, the indicator also flashes overbought levels, increasing the chances of near-term profit taking.

Let’s now use technical analysis to project a bullish upside price target as Bitcoin moves into price discovery and also identify several key support levels to monitor during dips.

Amid Bitcoin's move into price discovery, investors can use a measured move, also known as the measuring principle, to project a potential price target.

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