Watch These Bitcoin Price Levels Amid Volatile Trading After U.S. Strikes Iran

Bitcoin (BTCUSD) briefly fell below $99,000 on Sunday as news that the U.S. had struck Iranian nuclear sites caused investors to reassess their appetite for risky assets.

The digital currency moved as low as $98,200 on Sunday afternoon, its lowest level since May 8, amid uncertainty about the geopolitical and economic outlook after the U.S. late Saturday entered a conflict between Israel that had intensified over the past week. In recent trading, bitcoin had rebounded to about $101,200 but was still well down from its high last Monday of near $109,000.

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

Descending Channel Takes Shape

After trending sharply higher between early April and late May, bitcoin has consolidated within a descending channel.

Over the past week, the cryptocurrency’s price has retraced toward the pattern’s lower trendline, an area on the chart that closely aligns with the psychological $100,000 level. Moreover, recent selling has coincided with the relative strength index falling below its neutral threshold, signaling weakening price momentum.

Let’s identify crucial support and resistance levels on Bitcoin’s chart.

Crucial Support Levels to Monitor

Investors should initially monitor the $100,000 level. This area on the chart is likely to gain significant attention near the descending channel’s lower trendline and a range of corresponding trading activity stretching back to last November.

A decisive close below this level could see the cryptocurrency’s price revisit lower support around $92,000. Investors may seek buying opportunities in this area near a horizontal line that links a series of price action on the chart between November and April.

Key Resistance Levels to Watch

The first resistance level to watch sits around $107,000. The cryptocurrency could face overhead selling pressure in this location near the descending channel’s top trendline, which also closely aligns with prominent peaks that formed on the chart in December and January.

Finally, buying above this level could see BTC bulls push the price toward $112,000. Investors who have accumulated bitcoin during its recent retracement could decide to lock in profits near last month’s high, which also marks the cryptocurrency’s all-time high.

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As of the date this article was written, the author does not own any of the above securities.