Watch These Bitcoin Price Levels as Cryptocurrency Retreats From Recent Highs

investopedia.com:

Bitcoin (BTCUSD) surged above $100,000 early this week but has tumbled in recent days as investors reassess this year's interest rate outlook.

The cryptocurrency has lost ground as stronger-than-expected economic data has driven upTreasury yields, putting downward pressure on risk-on assets such as bitcoin amid investor concerns that the Federal Reserve may not cut interest rates again.

Notably, on Wednesday, spot Bitcoin exchange-traded funds (ETFs) recorded their second-largest daily outflows since they began trading last January, indicating caution toward the asset class among institutional investors.

Bitcoin has more than doubled over the past year, with the cryptocurrency surging about 33% since November’s election amid expectations that the incoming Trump administration and a crypto-friendly Congress will pave the way for a more-favorable regulatory landscape.

Bitcoin was trading at $93,500 late Thursday, down slightly from the day before and well below the high for the week on Monday of near $103,000. The cryptocurrency set an all-time high of around $108,000 in mid-December.

Below, we break down the technicals on bitcoin’s chart and point out important price levels to watch out for.

Since setting an all-time high (ATH), bitcoin’s price has come under significant selling pressure. More recently, the cryptocurrency’s price formed a bearish engulfing pattern to halt last week’s rally back above the closely watched $100K level.

In addition, the relative strength index (RSI) has dropped below the 50 threshold and the price has fallen decisively under the respected 50-day moving average (MA), signaling weakening buying momentum.

Let’s turn to bitcoin’s chart to identify keysupport and resistance levels that