Bitcoin enthusiasts have reason to celebrate today as the cryptocurrency surges past $105,700, buoyed by a pivotal agreement between the United States and China to slash tariffs. This breakthrough in trade negotiations, announced in Geneva over the weekend, has injected fresh optimism into the market, with Bitcoin bulls eyeing a potential rally towards $150,000.
US-China Trade Truce: A Catalyst for Bitcoin
The recent US-China trade truce, brokered by US Treasury Secretary Scott Bessent and Chinese Vice President He Lifeng, has set the stage for a significant shift in global economic sentiment. By agreeing to reduce tariffs—dropping US tariffs on Chinese goods from a steep 145% to a manageable 30%, and reciprocally, China’s tariffs on US imports from 125% to just 10%—both nations have opened the door to revitalized trade flows. This détente has been a shot in the arm for risk assets, with Bitcoin, the quintessential high-beta risk asset, taking center stage. This optimism was previously highlighted in Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible, where traders anticipated such positive developments.
David Ingles, the Chief Markets Editor at Bloomberg, noted, “The trade agreement not only alleviates economic tensions but also enhances liquidity in the markets, which is a boon for Bitcoin.” He adds that the crypto market had been languishing under the shadow of the trade war, with investor caution stifling inflows. Now, the tide appears to be turning.
Chart Patterns Signal Bullish Continuation
Bitcoin’s recent price action has been underpinned by a textbook bull flag breakout on the weekly chart. This pattern, characterized by a period of consolidation following a sharp upward move, suggests that the cryptocurrency is poised for further gains. The breakout above the flag’s upper trendline, coupled with a slight uptick in trading volume, underscores a bullish continuation narrative. As discussed in Bitcoin Traders Eye Breakout to New Highs as Trump Says Tariff Deals Progressing, traders are closely monitoring these technical signals for potential new highs.
Technical indicators add weight to this optimistic outlook. The relative strength index (RSI) on the weekly chart has rebounded above 65, indicating renewed buying pressure without tipping into overbought territory. However, it’s not all smooth sailing from here.
André Dragosch, European Head of Research at Bitwise, offers a note of caution. “Our Cryptoasset Sentiment Index is at its highest since November 2024, a level that has historically preceded short-term corrections,” he explains. This sentiment, while bullish, could be a double-edged sword, implying the potential for a pullback before any sustained rally.
Market Dynamics and Future Outlook
In the aftermath of the tariff reduction, traditional markets have reacted with gusto. The S&P 500 futures jumped 2.8%, while the US dollar strengthened by 0.7%. Conversely, gold—a traditional safe haven—saw a 2.3% decline, reflecting a shift in risk appetite. This environment bodes well for Bitcoin, which thrives when investor confidence is high and liquidity is abundant.
Nevertheless, the road to $150,000 is not without its hurdles. Dragosch points out that Bitcoin’s price was retracing slightly after surpassing $107,000, with daily RSI levels hinting at overbought conditions. The next support level is pegged around the $100,000 mark, aligned with the 0.786 Fibonacci retracement line. A breach of this level could see Bitcoin testing its exponential moving average (EMA) supports, with the 20-day EMA positioned at approximately 97,385.
While the long-term outlook for Bitcoin remains robust, the immediate path involves navigating through a potential short-term correction. Investors and traders alike will be watching closely to see if Bitcoin can maintain its momentum and capitalize on the favorable macroeconomic backdrop.
In conclusion, the US-China trade agreement has reignited interest in Bitcoin, setting the stage for possible new heights. However, as with any market, caution is warranted. The coming weeks will be critical in determining whether Bitcoin can sustain its current trajectory or if a period of consolidation is on the horizon.
Source
This article is based on: Bitcoin set for $150K BTC price rally as US, China agree to slash tariffs
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
