Bitcoin (BTCUSD) price target: $100,000

Bitcoin (BTCUSD) rose again Wednesday to bring the closely watched $100,000 mark back into striking distance.

Bitcoin (BTCUSD) rose again Wednesday to bring the closely watched $100,000 mark back into striking distance as the pioneer cryptocurrency continues to outperform major risk-off assets.

The cryptocurrency, along with other risk-on assets, have rallied the past few days amid optimism that the White House could scale back its plans on tariffs.

The president said the levy on China will be “substantially” below its current 145% level, while also adding that he expects to announce a new round of tariffs on Wednesday evening.

The comments come as the White House is expected to announce a tariff exclusion process for businesses and consumers in the coming days.

The pessimism around the trade war has seen Bitcoin fall to lows of $60,000 for the year, while major U.S. stocks have also slipped to new 2020 lows. But the pessimism abated somewhat after President Trump walked back recent rhetoric about firing Fed Chair Jerome Powell, ultimately shoring up confidence across financial markets that the central bank will retain its independence.

Bitcoin is now trading at around $93,000, while major U.S. stocks have rebounded sharply from their March lows.

Bitcoin is still well below its record high of $109,000 set in January, but has risen about 25% from its 2020 low set in early April, as investors potentially turn to the cryptocurrency as an alternative to volatile stocks and a weakening U.S. dollar.

Below, we break down the technicals on Bitcoin’s chart and point out major price levels that investors will likely be eyeing.

Falling Wedge Breakout

Bitcoin oscillated within a four-month falling wedge before breaking out above the pattern earlier this month. Importantly, the price staged a decisive close above the closely watched 200-day moving average in Tuesday’s trading session, though volumes were lackluster.

Meanwhile, the relative strength index (RSI) confirms bullish momentum with a reading above the 50 threshold, but remains below overbought levels, giving the price sufficient room to explore higher levels.

Let’s identify two major overhead areas to watch amid the potential for further upside in bitcoin’s price and also point out key support levels worth monitoring during retracements.

Major Overhead Areas to Watch

Firstly, it’s worth keeping track of the psychological $100,000 area. Bitcoin’s price could experience selling pressure at this major level near a horizontal line that connects an array of price action on the chart between last November and late February.

However, a close above this region could see the price make a move to around $107,000. Investors who have bought the cryptocurrency’s recent breakout may decide to lock in profits in this area near the prominent December and January peaks.

This location also matches with a projected measured move price target that calculates the depth of falling wedge and adds that amount to the pattern’s breakout point. For example, adding $22,000 to $85,000 forecasts a target of $107,000.

Support Levels Worth Monitoring

Selling in the cryptocurrency could see an initial retracement to around $85,000. Investors may seek buying opportunities in this area near this month’s breakout point, which also closely aligns with a range of trading activity on the chart stretching back to late February.

Finally, a deeper pullback opens the door for a retest of lower support at $76,000. Investors may look to accumulate bitcoin in this area near a trendline that links April's swing low with a series of prices following the cryptocurrency’s initial post-election pop in November last year.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only and do not constitute investment advice.