Watch these Bitcoin price levels as the cryptocurrency returns above $110,000

Bitcoin (BTCUSD) rose back above the closely watched $110,000 level on Monday as investors looked past the recent massive liquidation event in the cryptocurrency market and ongoing trade tensions between the US and China.

The leading cryptocurrency received a boost after President Donald Trump appeared to soften his tone recently regarding trade disputes with China. The latest comments came just over a week after the president imposed hefty tariffs on all Chinese imports, wiping out $19 billion worth of leveraged cryptocurrency bets.

Bitcoin was trading at $110,900 recently, after falling below $104,000 on Friday. The digital currency has risen by 18% since the beginning of the year, although it is still significantly lower than the record level of about $126,000 recorded two weeks ago. Looking ahead, interest rate expectations, prospects for crypto-friendly legislation, and upcoming trade developments between Washington and Beijing are likely to drive cryptocurrency investor sentiment.

Below, we take a closer look at the Bitcoin chart and use technical analysis to identify key price levels worth paying attention to.

Buy interest near the confluence of support

Bitcoin found buying interest near the confluence of support from the lower trend line of a three-month trading range and the bullish 200-day moving average (MA).

While this move also coincided with the RSI rising from its recent low, the indicator is still below the neutral limit to indicate lackluster price action. Looking ahead, investors should monitor trading volume to ascertain whether the recent rebound has the potential to gain momentum or simply reflects short-term speculative activity.

Let’s point out the key support and resistance levels on the Bitcoin chart that investors are likely to track.

Key support levels to watch

A decisive break below the lower trend line of the trading range could lead to a drop to the psychological level of $100,000. This area is likely to provide support near the trend line connecting a series of highs and lows on the chart that extends back to the high recorded last November.

Bitcoin bulls’ failure to defend this key level opens the door to a deeper pullback towards $93,000. However, investors may step up to the plate at this location, looking to buy the cryptocurrency near the corresponding range of trading activity on the chart between November and April.

Important resistance levels to monitor

If Bitcoin price gains more bullish momentum this week, investors should keep an eye on the $117,000 level initially, which is currently above the respectable 50-day moving average. Tactical traders who bought near last week’s low may look to take profits in this area near the September high and a closely matched period of sideways drift on the chart during the second half of July.

Finally, a break above this level could take the price to around $123,000. This is likely to attract significant interest near the July, August and October highs, which represent the top of the cryptocurrency’s current trading range.

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