• Bitcoin surged above $100,000 early this week but has tumbled in recent days as investors reassess this year's interest rate outlook.

• The digital asset's price recently formed a bearish engulfing pattern to halt the recent rally.

• Investors should watch key support levels on Bitcoin's chart around $92,000, $87,000, and $74,000, while also monitoring important resistance levels near $100,000 and $106,000.

Bitcoin (BTCUSD) surged above $100,000 early this week but has tumbled in recent days as investors reassess this year's interest rate outlook.

The cryptocurrency has lost ground as stronger-than-expected economic data has driven up Treasury yields, putting downward pressure on risk-on assets such as bitcoin amid investor concerns that the Federal Reserve may not cut interest rates again.

Notably, on Wednesday, spot Bitcoin exchange-traded funds (ETFs) recorded their second-largest daily outflows since they began trading last January, indicating caution toward the asset class among institutional investors.

Bitcoin has more than doubled over the past year, with the cryptocurrency surging about 33% since November’s election amid expectations that the incoming Trump administration and a crypto-friendly Congress will pave the way for a more-favorable regulatory landscape.

Bitcoin was trading at $93,500 late Thursday, down slightly from the day before and well below the high for the week on Monday of near $103,000. The cryptocurrency set an all-time high of around $108,000 in mid-December.

Below, we break down the technicals on bitcoin’s chart and point out important price levels to watch out for.

Since setting an all-time high (ATH), bitcoin’s price has come under significant selling pressure. More recently, the cryptocurrency’s price formed a bearish engulfing pattern to halt last week’s rally back above the closely watched $100K level.

In addition, the relative strength index (RSI) has dropped below the 50 threshold and the price has fallen decisively under the respected 50-day moving average (MA), signaling weakening buying momentum.

Let’s turn to bitcoin’s chart to identify key support and resistance levels that investors will likely be following closely.

The first support level to eye sits around $92,000. This area may find buying interest near the late-November retracement low and December trough, as well as from the lower trendline of a potential new descending channel forming on the chart.

Selling below the location could see a move down to the $87,000 level, a location on the chart where bitcoin bulls may seek entry points beneath a pennant pattern that preceded the cryptocurrency’s move to its record high.