Watch These Bitcoin Price Levels as Cryptocurrency Reclaims $100,000 Level

Bitcoin (BTCUSD) will remain in the spotlight Friday after surging above the closely watched $100,000 level on Thursday for the first time since early February.

The legacy cryptocurrency rallied along with stocks after President Donald Trump announced that the U.S. had reached a trade agreement with the U.K. The president also said that further deals could be on the way and expressed optimism about trade talks with China that are slated to take place this weekend.

Bitcoin’s price had fallen sharply between February and April, weighed down by uncertainty about tariffs and their potential impact on the economy, as well as disappointment with the pace of reforms by the Trump administration to support the crypto industry. With the latest surge, bitcoin is nearly 40% above last month’s low and up 10% from the start of the year.

Bitcoin was trading at $102,700 late Thursday evening, up from an intraday low of around $96,000.

Below, we take a closer look at Bitcoin’s chart and apply technical analysis to identify crucial price levels worth watching out for.

Record High in Sight

After reclaiming the 200-day moving average (MA) last month, bitcoin traded within a narrow consolidation period before today’s strong breakout above the all-important $100,000 mark. The move sets the stage for a potential retest of the cryptocurrency’s record high established at $109,000 in late January.

Meanwhile, the relative strength index confirms bullish price momentum with a reading above the 70 threshold, though the indicator also cautions overbought conditions that could lead to short-term profit-taking.

It’s important to note that trading volumes on Coinbase (COIN), the largest crypto exchange in the United States, have declined since bitcoin’s move higher started in early April, indicating larger market participants may be sitting out the current rally.

Let’s identify two crucial overhead areas on bitcoin’s chart worth watching while also locating key support levels to monitor.

Overhead Areas Worth Watching

The first overhead area to watch sits around $107,000. This location will likely attract significant attention near the prominent December and January peaks that marked a double top pattern on the chart.

Investors can forecast an overhead area to watch above the cryptocurrency’s record high by using bars pattern analysis. 

To apply this technique, we take the price bars comprising bitcoin’s move higher that preceded the recent consolidation period and reposition them from today’s breakout point. The analysis projects a potential upside target of around $120,000 assuming a continuation move plays out.

Key Support Levels to Monitor

Short-term profit-taking could see the cryptocurrency’s price revisit the $100,000 level. Following today’s breakout above this key psychological area, the region may flip from prior resistance into future support.

However, inability of bulls to successfully defend this level could trigger a more significant retracement in bitcoin’s price to $92,000. This region finds a confluence of support from the nearby upward sloping 200-day MA and a trendline that connects a range of corresponding trading activity on the chart stretching back to late November last year.

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As of the date this article was written, the author does not own any of the above securities.