Bitcoin News Today: Bitcoin Rebounds 4.35% as U.S.-EU Trade Pact Sparks Short-Term Optimism, Eyes $120K Resistance

A new transatlantic trade agreement between the U.S. and EU has sparked optimism in financial markets, with crypto analysts highlighting potential implications for Bitcoin’s short-term trajectory. The deal, announced by U.S. President Trump on July 28, includes terms such as EU commitments to an additional $600 billion in investments, U.S. arms sales, and a unified 15% car tariff. European Commission President Ursula von der Leyen described the agreement as a step toward “stability and long-term confidence” in trade relations [1]. Following the announcement, Bitcoin (BTC) rebounded from a low of $115,000 to consolidate near $119,000–$120,000, a key resistance zone [1].

Bitunix Analysts noted the market’s focus on critical support and resistance levels. “The current price action reflects a tug-of-war between bulls and bears,” the firm stated, emphasizing that a breakout above $119,000–$120,000 with increased volume could propel BTC toward $122,000. Conversely, a breakdown below $115,000 may signal renewed bearish pressure. The analysts advised investors to monitor U.S. macroeconomic data, including inflation and labor market trends, as these indicators will shape broader market sentiment [1].

The analyst’s forecast aligns with the observed volatility in the crypto market post-announcement. While the EU-U.S. trade deal has historically served as a catalyst for risk-on sentiment, the crypto asset’s performance remains contingent on technical levels and external macroeconomic factors. The $120,000 psychological barrier, if broken, could validate the bulls’ narrative, but persistent uncertainty around global trade dynamics and regulatory developments adds complexity to the outlook [1].

Investors are urged to adopt a cautious approach amid these dynamics. Bitunix Analysts recommend defensive strategies to mitigate risks, particularly given the potential for sudden reversals if key resistance levels fail to hold. The firm also highlighted that the agreement’s long-term impact on trade flows and capital allocation could indirectly influence crypto markets, though no direct causal relationship has been established [1].

The market’s immediate reaction underscores the interconnectedness of traditional and digital asset classes. However, analysts caution that Bitcoin’s price action should not be conflated with the broader economic implications of the EU-U.S. trade deal. “While the agreement creates a favorable macroeconomic backdrop, technical analysis remains paramount for near-term positioning,” the report concluded [1].

Source: [1] [title1Bitunix Analyst: EU Trade Agreement Seen as Bullish, BTC Faces Short-Term Resistance, $120,000 Barrier to Break] [url1https://www.theblockbeats.info/en/flash/304720]