Bitcoin (BTCUSD) surged to its highest level in over two months, bringing this value back close to the psychological threshold of $100,000.

The digital asset surged on Thursday after reports that investment bank Morgan Stanley is considering adding cryptocurrency trading to its E*Trade platform sometime next year.

Sentiment was also boosted after Strategy (MSTR), the world's largest Bitcoin-holding company, announced plans to buy more Bitcoin through a $21 billion stock offering.

Bitcoin has risen about 30% from its lows in early April as investors sought to diversify their portfolios amid uncertainty surrounding the Trump administration's trade policies and their potential impact on the economy.

In the context of recent market turmoil, Bitcoin and stocks have sometimes moved in opposite directions, providing evidence to some investors that cryptocurrency is finally showing its value as a safe haven.

This old cryptocurrency recently traded at $97,000, still below the record high of around $109,000 in January but up from last month's low of below $75,000.

Below, we will take a closer look at the Bitcoin chart and apply technical analysis to identify notable key price levels.

Breaking the Pennant Pattern

After breaking out of the descending channel last month, Bitcoin's price surged before consolidating into a narrow flag pattern.

In a win for the bulls, the pioneering cryptocurrency made a breakout on the upper trendline of the flag on Thursday, setting the stage for a continued upward move. Furthermore, the relative strength index confirms the bullish momentum, with the indicator approaching the overbought territory.

However, it is noteworthy that trading volume remains below average during Bitcoin's recent rally, indicating that larger market participants may still be sitting on the sidelines.

Let's identify two key areas on the Bitcoin chart that investors may be watching and also determine notable key support levels in future pullbacks.

Important High Areas to Pay Attention to

The first overhead area to watch is at $100,000. This key position is likely to provide resistance near the round number and horizontal line linking a range of trading activity on the chart between November and February.

A further bullish move could see Bitcoin test the overhead resistance around $107,000. Investors who accumulated the cryptocurrency at lower price levels may decide to lock in profits at this level near the prominent swing high from December and January. This area also closely aligns with the bullish target of the projected impulse move higher before the flag and repositions from the breakout point of the pattern.

Key Support Levels Worth Noting

During the pullback, initial investors should keep an eye on the $92,000 level. A retreat to this area could attract buying interest near the lows of the flag pattern, also corresponding with some peaks and troughs on the chart stretching back to last November.

Ultimately, a drop below this important technical level opens the door for a decline to $85,000. Investors may look for entry points in this area near the lows of February and a sideways phase on the chart before Bitcoin breaks out of the descending channel last month.