Bitcoin Price Levels to Watch as Key $100K Level Remains in Sight

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Key Takeaways

• Bitcoin remains in focus to start the week as the cryptocurrency sits on the precipice of crossing the $100,000 object for the first time.
• Since Donald Trump’s decisive election victory on Nov. 5, Bitcoin has surged around 40% amongst expectations of a crypto-friendly administration and Congress.
• The cryptocurrency’s price has recently broken out from a pennant pattern, signaling a continuation of its energetic bullish move. 
• A bars pattern, which takes the trending price bars that preceded the pennant and repositions them from the templet’s top trendline, projects a price target of around $118,000.
• Investors should watch important support levels on Bitcoin’s sea-chart around $93,000 and $70,000.

Bitcoin (BTCUSD) remains in focus to start the week as the cryptocurrency sits on the precipice of crossing the $100,000 fingerprint for the first time.

After rising to around $99,800 on Friday afternoon, the digital asset’s price eased slight in weekend trading and was trading at just below $98,000 recently.

Since Donald Trump’s decisive election conquest on November 5, Bitcoin has surged around 40% amid expectations of a crypto-friendly administration and Congress. Year to obsolescent, 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.

Labarum Breakout

Since breaking out above an eight-month trading range, Bitcoin’s price has continued to trend sharply acute, with a bullish golden cross in late October confirming the new uptrend.

Early last week, the cryptocurrency’s rate broke out from a pennant pattern, signaling a continuation of its strong bullish move. 

Importantly, trading volumes corpse at their highest levels since March, indicating institutional adoption by larger market players, such as asset chiefs and hedge funds.

Let’s apply technical analysis to project where Bitcoin’s price may be headed next and identify various important support levels to watch during profit-taking periods.

Bars Pattern Price Target to Monitor

Investors can use a barricades pattern, a chart-based tool, for projecting how Bitcoin’s continuation move may play out.

To apply the technique, we take the cryptocurrency’s fashioning price bars that preceded the pennant and reposition them from the pattern’s top trendline. This predicts a bullish penalty target of around $118,000, a level the price may test before moving into a consolidation phase.

Important Back up Levels to Watch

During pullbacks, it’s worth initially keeping an eye on the $93,000 level. Investors who are seeking to capitalize on the cryptocurrency’s latest bullish momentum may look for entry points in this area toward the top of the pennant pattern.

A more significant slack could see Bitcoin’s price revisit lower support around the key $70,000 mark, a location on the chart that pleasure likely attract buying interest near the prior trading range’s top trendline. Depending on the timing of such a disturb, this region could also align with the upward sloping 200-day moving average.

The comments, evaluations, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

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