Bitcoin (BTCUSD) soared to an unprecedented $103,000 late Wednesday, marking a significant milestone as the world’s most well-known cryptocurrency surged above $100,000 for the first time in its history. This bullish rally comes on the heels of investor optimism that the incoming Trump administration, coupled with a new Congress, may usher in policies that will support the cryptocurrency market.

The latest surge follows the announcement that President-elect Donald Trump has tapped Paul Atkins, a known crypto advocate, to lead the Securities and Exchange Commission (SEC). Atkins, who will replace crypto critic Gary Gensler when he steps down in January, is seen as a proponent of crypto-friendly regulation, sparking significant enthusiasm within the digital asset community.

Since Trump’s election, Bitcoin has experienced a remarkable 45% increase, driven by speculation that policies favoring cryptocurrencies will become more prevalent. The latest rally, spurred by the SEC appointment, saw Bitcoin’s price surge from around $95,000 to its current trading value of $103,000.

Bullish Technical Indicators

Bitcoin’s chart is reflecting strong bullish momentum. The breakout above $100,000 coincided with the formation of a pennant pattern, a bullish chart formation that typically signals the continuation of an uptrend. Adding to the optimism, the 50-day moving average (MA) crossed above the 200-day MA in late October, forming a golden cross — another strong bullish indicator.

However, technical indicators such as the Relative Strength Index (RSI) are starting to flash caution signs, with readings above 70 signaling that Bitcoin is entering overbought territory. This could increase the likelihood of near-term profit-taking, which could result in short-term pullbacks.

Price Target Projections: $129,930 in Sight

Bitcoin’s continued surge into price discovery means that it could be poised for further upside. Investors and traders can look to the “measured move” technique to set bullish price targets. This method calculates the size of the prior bullish move before the pennant pattern and projects it forward, suggesting a potential target of $129,930, based on the move from $97,500 to $129,930.

Key Support Levels to Watch

Despite the bullish outlook, Bitcoin is not without risks. A wave of profit-taking could pull Bitcoin back to several key support levels. The first significant support zone to monitor is around $90,500, which coincides with the lower end of the pennant pattern. If the sell-off continues, the next major support level is around $80,500, where the price found support earlier in November, and just below the upward-sloping 50-day moving average.

A deeper decline could bring Bitcoin’s price closer to the critical $70,000 level. This region aligns with both the top of a prior trading range and the 200-day moving average, which could offer a floor for any further downside.

Final Thoughts

Bitcoin’s remarkable run above $100,000 has not only captured attention but also reinforced the belief that favorable regulatory shifts under the incoming Trump administration could provide further fuel to the crypto market. While technical indicators suggest that Bitcoin’s momentum remains strong, the potential for profit-taking and short-term corrections remains a consideration for traders and investors.

For now, Bitcoin continues its journey in price discovery, with the $129,930 target within reach. However, the coming weeks could bring volatility, as key support levels and broader market sentiment shape its next move.

As always, investors should remain cautious and monitor the evolving regulatory landscape, as well as technical signals, to navigate the rapidly shifting cryptocurrency market.