Watch These Bitcoin Price Levels as Cryptocurrency Hits $110,000 For First Time

Bitcoin (BTCUSD) surged above $110,000 for the first time on Wednesday, surpassing its previous record set just before President Donald Trump’s January inauguration.

The cryptocurrency gathered momentum this week after the Senate on Monday voted to advance a bill that establishes a regulatory framework for stablecoins and JPMorgan Chase CEO Jamie Dimon, a longtime crypto skeptic, said the bank would allow clients to buy bitcoin. 

The digital asset has also received a boost recently from growing demand from corporate treasuries. Michael Saylor’s Strategy (MSTR), which popularized the idea, purchased an additional $765 million worth of Bitcoin last week, bringing the value of its holdings in the cryptocurrency to more than $63 billion. 

These latest developments reinforce expectations that Washington remains committed to developing a crypto-friendly regulatory framework and highlight the accelerating corporate acceptance of digital assets.

Bitcoin was trading at $110,000 recently, after rising as high as $110,700 this evening. The digital currency has gained about 45% since hitting an early-April low of around $76,000, when investors fled risky assets amid growing concerns about global trade tensions that have since subsided.

Below, we break down the technicals on bitcoin’s chart and identify crucial price levels that investors will likely be watching.

Rising Wedge in Focus

Since bottoming out last month, bitcoin’s price has trended higher within a rising wedge, a chart pattern that signals a potential reversal upon a breakdown. Moreover, it’s worth pointing out the move higher has occurred on decline trading volume, indicating that larger market participants may remain on the sidelines.

However, more recently, the price has edged toward the pattern’s upper trendline in a move that has coincided with the relative strength index crossing into overbought territory. In another win for BTC bulls, the 50-day moving average crossed above the 200-day MA on Wednesday to form a golden cross, a chart event indicating further upside.

Let’s use technical analysis to project a potential bullish price target above bitcoin’s record high and also identify three crucial support levels worth monitoring during future retracements in the cryptocurrency.

Chart-Based Bullish Price Target

Investors can project a price target above bitcoin’s record high by using the bars pattern tool. We apply this technique by taking the cryptocurrency’s trend higher from late April to early May and repositioning it from Sunday’s low. This analysis projects a target of around $120,000. 

We selected this prior trend as it commenced following a narrow consolidation range, similar to how the current move higher has started.

Crucial Support Levels Worth Monitoring

The first lower level to monitor sits around $107,000. Investors will be watching if bitcoin’s price can hold above the two prominent peaks that formed on the chart in December and January, with the area possibly flipping from prior resistance into future support.

The bulls’ inability to defend this crucial level could see the price fall to the psychological $100,000 mark. This area would likely provide support near a horizontal line that connects a series of trading activity on the chart stretching back to last November.

Finally, a more significant drop opens the door for bitcoin’s price to revisit lower support around $92,000. Investors may seek entry points in this area near the two moving averages, which closely align with a range of peaks and troughs that developed on the chart between November and March.

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