Bitcoin (BTCUSD) Price Prediction: BTC Could Retest Its All-Time High of $109,000

President Donald Trump announced on Thursday that the U.S. had reached a trade agreement with the U.K., sending stocks higher and setting the stage for further gains in bitcoin (BTCUSD).

The president said that the U.S. had "no issues" with the U.K. and the two countries would be able to quickly reach a trade deal. He added that the U.S. was also making good progress in trade talks with China, with another round of discussions slated for this weekend.

"We're doing very well and we'll see what happens," Trump said at a White House event.

The president's remarks come after months of uncertainty over tariffs and their potential impact on the economy, as well as disappointment with the pace of reforms by the Trump administration to support the crypto industry.

The world's leading cryptocurrency had fallen sharply between February and April, but with the latest surge, bitcoin is now nearly 40% above last month's low and up 10% from the start of the year.

Bitcoin was trading at $102,700 late Thursday evening, up from an intraday low of around $96,000.

Below, we take a closer look at bitcoin's chart and apply technical analysis to identify crucial price levels worth watching out for.

Record High in Sight

After reclaiming the 200-day moving average (MA) last month, bitcoin traded in a narrow consolidation period before today's strong breakout above the all-important $100,000 mark. The move sets the stage for a potential retest of the cryptocurrency's record high established at $109,000 in late January.

Meanwhile, the relative strength index confirms bullish price momentum with a reading above the 70 threshold, although the indicator also cautions overbought conditions that could lead to short-term profit-taking activity.

It's important to note that trading volumes on Coinbase (COIN) - the largest crypto exchange in the U.S. - have declined since bitcoin's move higher began in early April, indicating that larger market participants may be sitting out the current rally.

Let's identify two crucial overhead areas on bitcoin's chart worth watching while also locating key support levels to monitor.

Overhead Areas Worth Watching

The first overhead area to watch sits around $107,000. This location will likely attract significant attention given the proximity to the December and January peaks that formed a double top pattern on the chart.

Investors can forecast an overhead area to watch above the cryptocurrency's record high by using bars pattern analysis. To apply this technique, we take the price bars that comprise bitcoin's move higher, which occurred before the recent consolidation period, and reposition them from today's breakout point. The analysis projects a potential upside target of around $120,000, assuming a continuation move plays out.

Key Support Levels to Monitor

Short-term profit-taking could see the cryptocurrency's price revisit the $100,000 level. Following today's breakout above this key psychological area, the region may flip from prior resistance into future support.

However, inability of bulls to successfully defend this level could trigger a more significant retracement in bitcoin's price to $92,000. This region finds a confluence of support from the nearby upward sloping 200-day MA and a trendline that connects a range of corresponding trading activity on the chart stretching back to late November last year.