Important points
- Bitcoin surged past the significant $110,000 mark on Monday, as investors appear to have brushed off recent large-scale sell-offs in the crypto market and ongoing trade tensions between the US and China.
- The cryptocurrency drew buying interest around the lower trendline of its three-month trading range and in line with the upward-moving 200-day moving average.
- Keep an eye on crucial support levels around $100,000 and $93,000 for Bitcoin, while also noting key resistance points near $117,000 and $123,000.
Bitcoin made a notable rise above the much-anticipated $110,000 mark on Monday, with investors seeming to ignore recent large-scale sell-offs within the crypto sector and the persistent trade tensions between the US and China.
The digital asset gained momentum after President Trump showed signs of easing his hardline approach towards China in terms of trade. This statement followed his recent implementation of hefty tariffs on all Chinese imports, which led to a staggering loss of $19 billion in leveraged crypto positions just days prior.
At last check, Bitcoin was priced at $110,900 after dipping below $104,000 on Friday. Since the start of the year, it has risen by 18%, although it still remains significantly below its peak of roughly $126,000 reached a couple of weeks ago. Moving forward, aspects such as interest rates, potential favorable regulations for crypto, and future developments in US-China trade relations could positively influence investor sentiment in the cryptocurrency market.
Now, let’s delve deeper into Bitcoin’s performance and examine the technical aspects that might be critical for investors to consider.
Desiring to purchase near the support confluence
Bitcoin has attracted buying interest near the lower trendline of its three-month trading range and the support indicated by the rising 200-day moving average.
This activity aligns with a recent uptick in the relative strength index from its previous lows, yet it’s important to note that the index has yet to surpass the neutral level, suggesting that price movements have been somewhat stagnant. Moving ahead, it will be important to watch trading volumes to determine if this recent spike is gaining traction or if it’s merely a short-lived speculative surge.
Let’s highlight the key support and resistance levels on Bitcoin’s charts that investors should be attentive to.
Key support levels to look out for
If Bitcoin breaks decisively below the lower trendline of its trading range, it could trigger a decline towards the psychological $100,000 mark. This level may find additional support from a trendline connecting various peaks and troughs back to November’s highs.
Should Bitcoin bulls fail to defend this vital level, it could likely lead to an even greater drop down to $93,000. However, it’s worth noting that investors might step in to buy around this level, particularly if it aligns with previous trading activity from November to April.
Important resistance levels to monitor
Should Bitcoin continue its upward movement this week, it will be crucial for investors to watch the $117,000 level, which rests just above the significant 50-day moving average. Traders who entered near last week’s lows may look to take profits around this area, considering it lines up with the peak from September and a sideways trading period seen in late July.
Ultimately, if the price can move beyond this point, it could rally up to approximately $123,000, a level likely to draw attention given its historical peaks from July, August, and October, marking the upper boundary of Bitcoin’s current trading range.
