Bitcoin (BTCUSD) will likely remain on 澳洲幸运5官方开奖结果体彩网:watchlists Wednesday as the largest cryptocurrency by 澳洲幸运5官方开奖结果体彩网:market capitalization nudges towards the $100K mark.

On Tuesday, Bitcoin set a 澳洲幸运5官方开奖结果体彩网:new record high over $94,000, before slightly easing to around $92,000 at the start of Asian trading. Since Dona🎃ld Trump’s election victory, the cryptocurrency has soared around 35ꦆ% amid optimism that the incoming administration will establish policies that broadly benefit the asset class.

Sentiment received a boost today 澳洲幸运5官方开奖结果体彩网:following a report that the president-elect’s Trump Media & Technology Group (DJT) is in discussions to buy digital asset marketplace Bakkt (BKKT). Moreover, 澳洲幸运5官方开奖结果体彩网:options trading began on Blackrock’s (BLK) iShares Bitcoin Trust, providing investors with꧑ another way to hedge and speculate on the asset’s price.

Below, weꦦ take a closer look at Bitcoin’s chart and use technical analysis to identify important ❀price levels to watch out for as the cryptocurrency’s post-election rally continues.

Volume-Backed Rally Accelerates

Bitcoin’s price move has accelerated after decisively breaking out above the 澳洲幸运5官方开奖结果体彩网:psychological $70,000 level earlier this month.

Importantly, the legacy cryptocurrency has registered its highest 澳洲幸运5官方开奖结果体彩网:trading volumes since mid-March in recent weeks, signaling buying activity from larger market participants, such as 澳洲幸运5官方开奖结果体彩网:institutional investors.

While the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) confirms bullish price momentum with a reading above 70, the indicator also points to 澳洲幸运5官方开奖结果体彩网:overbought conditions that could trigger near-term dips.

Let’s turn to the chart to forecast a measured move 澳洲幸运5官方开奖结果体彩网:price target and identify two key 澳洲幸运5官方开奖结果体彩网:support levels that may be on inওves♕tors’ radar screens during pullbacks.

Measured Move Price Target

To forecast a potential price target, investors can use a measured move, also known as the 澳洲幸运5官方开奖结果体彩网:measuring principle.

We apply this technique to Bitcoin’s chart by measuring the percentage move of Bitcoin’s trend higher from October 2023 to March this year and adding it to the lower trendline value of the cryptocurrency’s recent eight-month 澳洲幸运5官方开奖结果体彩网:trading range. Fo🌼r example, we apply a 180% increase to $55,000, which projects an upside target of $154,000.

We selected this prior trending𒀰 move as it also followed a multi-month trading range in the cryptocurrency.

Key Support Levels to Monitor

During 澳洲幸运5官方开奖结果体彩网:profit taking, investors should keep a close eye on the $70,000 level. This area on the chart would likely attract buying interest near this month’s breakout point, which also roughly corresponds with the prominent November 2021 peak.

Finally, further selling could see Bitcoin drop to around $55,000🧸, a region where the price may encounter support from the recent trading range’s lower trendline.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

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