Watch These Bitcoin Price Levels as Cryptocurrency Is Back Above $110,000

Bitcoin (BTCUSD) climbed back above the closely watched $110,000 level Monday as investors looked past the recent massive liquidation event in the crypto market and ongoing U.S.-China trade tensions. 

The pioneer cryptocurrency received a boost after President Donald Trump seemed to soften his tone recently regarding trade disputes with China. The latest comments came a little over a week after the president imposed steep tariffs on all Chinese imports, which sparked a $19 billion wipeout of leveraged crypto bets.

Bitcoin was trading at $110,900 recently, after dropping below $104,000 on Friday. The digital currency has gained 18% since the start of the year, though is still down substantially from the record high of around $126,000 set two weeks ago. Looking ahead, the outlook for nterest rates, prospects for favorable crypto legislation, and upcoming trade developments between Washington and Beijing will likely drive crypto investor sentiment.

Below, we take a closer look at bitcoin’s chart and use technical analysis to identify major price levels worth watching out for.

Buying Interest Near Confluence of Support

Bitcoin has found buying interest near a confluence of support from the lower trendline of a three-month trading range and the rising 200-day moving average (MA).

While the move also coincided with the relative strength index rising from its recent floor, the indicator remains below its neutral threshold to signal lackluster price action. Looking ahead, investors should watch for trading volume to confirm whether the latest rebound has the potential to gain momentum or simply reflects short-term speculative activity.

Let’s point out major support and resistance levels on bitcoin’s chart that investors will likely be tracking.

Major Support Levels to Watch

A decisive breakdown below the trading range’s lower trendline could spark a decline to the psychological $100,000 level. This area would likely provide support near a trendline that connects a series of peaks and troughs on the chart extending back to last November’s high.

Bitcoin bulls’ failure to defend this major level opens the door for a deeper pullback toward $93,000. However, investors may step up to the plate in this location, looking to buy the cryptocurrency near a range of corresponding trading activity on the chart between November and April.

Important Resistance Levels to Monitor

If bitcoin’s price gains further upside traction this week, investors should initially monitor the $117,000 level, currently situated just above the respected 50-day MA. Tactical traders who bought around last week’s low may look to lock in profits in this area near the September peak and a closely aligned period of sideways drift on the chart during the second half of July.

Finally, a rally above this level could see the price climb to around $123,000. This are would likely attract significant attention near the July, August and October peaks, which mark the top of the cryptocurrency’s current trading range.

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