Watch these Bitcoin price levels as the cryptocurrency rebounds from the sell-off

Bitcoin (BTCUSD) has rebounded from a sharp decline on Friday but remains well below the record high it hit last week.

The sell-off saw Bitcoin fall to a low of around $107,000, triggering a record liquidation event across the broader cryptocurrency market, with losses totaling $19 billion. The move came after President Donald Trump announced tough new tariffs on China, raising fears of escalating trade tensions between the world’s two leading economies.

The ancient cryptocurrency began to recover some of those losses after Trump said on Sunday that “it will be okay” with China. Bitcoin was trading at $116,000 late Monday afternoon, a notable rebound from Friday’s low but still down about 8% from the record high of more than $126,000 set a week ago.

Below, we analyze the technical details on the Bitcoin chart and identify critical price levels that investors are likely to watch following the cryptocurrency’s recent volatility.

Potential triple top pattern

After hitting a new record high just above its three-month trading range early last week, the price of Bitcoin has fallen sharply, raising the possibility of a rare triple top pattern emerging in the process.

Furthermore, as the cryptocurrency rose last Monday, the RSI formed a relatively shallower rally to create a bearish divergence, a technical signal that indicates waning buying momentum.

However, in a win for the Bitcoin bulls, the price found buying interest around the lower trend line of the trading range and sits just above the 50-day moving average on Monday.

Let’s identify critical support levels to watch on the Bitcoin chart if the cryptocurrency comes under further pressure and also identify general areas worth monitoring.

Critical support levels to monitor

The first lower level to watch is around $107,000. This area on the chart finds a confluence of support from the 200-day moving average, a nearby upward slope, and a trend line that runs to the cryptocurrency’s notable peak in December.

A breakdown below this critical location could lead to a further decline to the $93,000 level. Investors may look for entry points in this area around the trend line connecting the multiple highs and lows on the chart between November and May.

Public areas worth monitoring

Initial recovery efforts could lead to a retest of resistance near $123,000. The cryptocurrency could experience selling pressure at this location near its July, August, and September highs, which also represent the top trendline of the recent trading range and a potential triple top.

Finally, a break to a new all-time high could fuel a move towards the $139,000 area. We predicted this area by calculating the distance in dollars to the recent trading range and adding this amount to the upper trend line of the pattern. For example, adding $16,000 to $123,000 results in a goal of $139,000.

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As of the date of writing this article, the author does not own any of the securities mentioned above.