As Bitcoin continues to rally towards its all-time record high of $29,000, it’s important to remember that the digital currency is notoriously volatile and is prone to extreme volatility swings both on the upside and downside. As such, it is important for traders to be aware of key technical levels in the BTC/USD chart in order to gain insight on the direction the asset may take next.
The most important technical level to watch right now is the $26,000 mark. This has been a crucial level of support/resistance for Bitcoin in the past and if BTC price breaches through this level, there is a high chance for a break out to the all-time high level of $29,000.
On the downside, crucial technical levels of support lie at the $24,000 and $21,500 marks. If these are breached, it could imply more strong downside momentum for BTC/USD. Also, traders should keep an eye on the moving averages, especially the 200 days Moving Average (MA), which has been acting as a strong support area during the latest leg up.
At the moment, the technical outlook for Bitcoin remains highly bullish and with the BTC/USD pair fast approaching its previous all-time high, the asset may be poised for another historic rally. That being said, investors should be very cautious as any sudden and major price movements could lead to large losses.