Watch these Bitcoin price levels as the cryptocurrency pulls back from its recent highs
Key takeaways
- Bitcoin rose above $100,000 early this week but has retreated in recent days as investors reevaluate interest rate expectations for this year.
- The price of the digital asset recently formed a bearish engulfing pattern to halt the recent rally.
- Investors should keep an eye on the key support levels on Bitcoin’s chart of around $92,000, $87,000, and $74,000, while also keeping an eye on important resistance levels near $100,000 and $106,000.
Bitcoin (Bitcoin against the dollar) rose above $100,000 early this week but has fallen in recent days as investors reevaluate interest rate expectations for this year.
The cryptocurrency has lost ground with stronger than expected economic data Treasury revenuesexerting downward pressure Risk Assets such as Bitcoin Amid investor concerns That the Fed may not cut interest rates again.
It is worth noting that on Wednesday, Bitcoin exchange-traded funds (ETFs) It recorded the second-largest daily outflows since it began trading last January, indicating caution towards the asset class among investors Institutional investors.
The value of Bitcoin has more than doubled over the past year, with the cryptocurrency rising by about 33% since the November elections amid expectations that… The incoming Trump administration 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 previous day and well below Monday’s intra-week high near $103,000. The cryptocurrency hit an all-time high of around $108,000 in mid-December.
Below, we break it down Technologies On the Bitcoin chart and point out important price levels that you should pay attention to.
Bearish engulfing pattern halts New Year’s rally
Since setting All time high (ATH)Bitcoin price has come under significant selling pressure. Recently, the cryptocurrency price formed a level Bearish engulfing pattern To stop last week’s rise back above the closely watched $100,000 level.
In addition, Relative Strength Index (RSI) It fell below the 50 threshold and the price fell decisively below the respectable level 50-day moving average (MA)Which indicates weak buying momentum.
Let’s go through the Bitcoin chart to determine the key Support and resistance Levels that investors are likely to watch closely.
Key support levels to watch
The first support level of the eye is located around $92,000. This area may find buying interest near the bottom of the late November correction and the bottom of December, as well as from the lower trend line of a potential new trend line. Descending channel Formation on the chart.
Selling below the position could lead to a drop to the $87,000 level, a location on the chart where Bitcoin bulls may seek Entry points under a Banner style Which preceded the cryptocurrency’s move to its record high.
A decisive close below this level opens the door for a decline to around $74,000. Long-term investors can look forward to this Accumulate Cryptocurrency in this region near MA for 200 days And prominent Tops In March and October. Such a move would represent a correction of about 20% from current prices.
Important resistance levels to monitor
A return of upward momentum may see another attempt at the level Psychic sign worth $100,000Although this area on the chart may provide overhead resistance near the range of recent highs and the upper trend line of the descending channel.
Buying above this level could lead to a retest of the important $106,000 level. Traders who bought the latest withdrawal We might look at Lock in profits About this level.
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