Bitcoin (BTCUSD) Surges to a Record High near $77,000 on Thursday

Investors view a future Trump Administration as a positive development for Bitcoin and cryptocurrency more broadly

Bitcoin (BTCUSD) price hit a record high near $77,000 on Thursday, continuing a rally that began after Donald Trump's victory in the presidential election.

Investors are optimistic about a future Trump Administration for Bitcoin and cryptocurrency in general, particularly in terms of regulation and the possibility of creating a federal strategic bitcoin reserve, two topics the president-elect addressed in a speech at the Bitcoin 2024 conference in July.

The Trump-fueled momentum comes at an opportune time for the flagship cryptocurrency, which has largely traded sideways for the past seven months as enthusiasm waned after the launch of spot Bitcoin exchange-traded funds (ETFs) in January and the asset's halving event in April. Bitcoin has gained about 80% since the start of the year, with the lion's share of those gains coming in the first quarter.

Below, we'll analyze the technicals on Bitcoin's weekly chart and identify key post-election price levels that investors may be watching.

Cup And Handle Pattern Breakout

Bitcoin price has formed a cup and handle, a chart pattern that signals a continuation of the cryptocurrency's longer-term uptrend, since its November 2021 peak.

In fact, the price broke out above the formation's upper trendline on Wednesday, potentially marking the start of a near-term move higher.

It's also noteworthy that while Coinbase (COIN) Bitcoin trading volumes remain below longer-term averages, they have increased in recent weeks, suggesting that investors may be returning from the sidelines.

Let's project a measured move price target and identify key support levels to watch during retracements.

Measured Move Price Target To Watch

While there is limited overhead price action to work with, we can project a bullish target using a measured move, also known as the measuring principle.

This charting technique calculates the depth of the "cup" portion of the cup and handle pattern and adds that amount to the formation's top trendline. In this case, we add $56,000 to $70,000, which yields a measured move target of $126,000.

Key Support Levels To Watch

On initial pullbacks, investors should keep their eyes peeled on the technically-important $70K level. A successful hold of this area could flip previous resistance into future support, setting a solid base for a potential move higher.

Lastly, an inability by the bulls to defend this level could see Bitcoin price fall below the 50-week moving average and revisit lower support around $53,000, a region where the cryptocurrency could attract buying interest near the September 2021 peak and September 2024 trough.

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

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