Key Points
- Bitcoin reached over $110,000 for the first time on Wednesday, breaking its previous high established before President Donald Trump’s inauguration.
- Following a recent low, Bitcoin’s price has been rising within a rising wedge chart pattern, which may indicate a potential reversal.
- Analysis suggests a bullish price target of around $120,000.
- Important support levels to watch are at approximately $107,000, $100,000, and $92,000.
Recently, Bitcoin (BTCUSD) surpassed $110,000, marking its first significant milestone since its prior record set around Trump’s inauguration.
The cryptocurrency gained momentum after the Senate voted to advance legislation providing a regulatory framework for stablecoins. Additionally, JPMorgan Chase’s CEO Jamie Dimon announced that clients would be allowed to buy Bitcoin, further supporting the market.
Increasing interest from corporate treasuries has also fueled Bitcoin’s rise. Notably, Michael Saylor’s Strategy (MSTR) made headlines by acquiring an extra $765 million in Bitcoin last week, raising its total holdings to more than $63 billion.
These developments enhance the outlook for a supportive regulatory environment in Washington and reflect a growing corporate acceptance of digital currencies.
Bitcoin was last seen trading around $110,000, having peaked at $110,700 earlier. Since dipping to approximately $76,000 in early April due to investor concerns over global trade tensions, it has bounced back by about 45%.
Focus on the Rising Wedge
After hitting a low last month, Bitcoin’s price started to climb within a rising wedge, indicating a possible forthcoming reversal. It’s important to note that this upward movement has been accompanied by declining trading volume, suggesting cautious positioning by major market players.
Projected Bullish Price Targets
Using the bars pattern analysis, investors can estimate a price target exceeding Bitcoin’s previous high by examining the cryptocurrency’s upward trend from late April to early May, which forecasts a target near $120,000.
Key Support Levels to Watch
The initial support level to monitor is around $107,000, where traders will assess if Bitcoin can maintain above previous peaks from December and January. If this level fails to hold, the next psychological support may be at $100,000.
A more pronounced drop could lead Bitcoin to test support around $92,000, which aligns with prior trading peaks and troughs from the last several months.
The insights and opinions shared in this article are for informational purposes only. For further information, please review our disclaimer.
As of the writing date, the author does not hold any of the securities mentioned.
