Bitcoin Surges 10% to $104,000 on US-UK Trade Deal Optimism

Bitcoin (BTC) has reached its highest levels since January, with traders closely monitoring key price levels to gauge the next move. After peaking at $104,000, BTC/USD is currently retracing to establish support, with market participants concerned about the fate of the $100,000 mark. The current price action is significant as it represents a crucial battleground, measured from the $75,000 lows seen this year.

The recent surge in BTC price, which has jumped 10% in days, has caught many by surprise. However, longer-term perspectives reveal that the most challenging battleground lies ahead. The rapid gains in BTC price have been driven by headlines, making the market highly sensitive to news and social media posts. The latest event involves a trade deal between the US and UK, but the duration of this optimism remains uncertain. Traders are hoping that this deal will pave the way for other major trade agreements, such as those with the EU and China.

To support the newly revisited levels and turn them into strong support, traders are looking for "passive flows," which refer to strong volume. This is particularly important after such a large market bid that led the price to break the $100,000 mark. Current local highs for BTC/USD have breached the $104,000 mark, and Fibonacci retracement analysis reveals that the price is now in a key zone. Bitcoin has already decisively cleared the 1.618 FIB level and is now trading at the volume-area high (VAH) plus a weak resistance trendline.

An accompanying chart offered important Fibonacci levels as measured from Bitcoin’s local lows around $75,000. Another trading account revealed a conspicuous breakout attempt for the 1.618 Fibonacci level on the monthly chart. The rejection and pullback from this level lasted a bit longer until May, but the Fibonacci level played out beautifully. A cautionary note involves order book liquidity at current levels. The latest data showed price eating away at bids immediately below $103,000, with the bulk of interest clustered below $100,000. To the upside, however, little friction remained, with the bulk of liquidations having already occurred on the return to six figures.

This notable imbalance makes the downside liquidation zone a potential key area to watch for volatility or price attraction. Traders are advised to conduct their own research when making investment decisions, as every investment and trading move involves risk. The current price action represents an important battleground, as measured from the $75,000 lows this year. The pace of the BTC price gains has come as a surprise for many, but longer-term perspectives show where the most difficult battleground lies. The latest event involves a trade deal between the US and UK, but how long optimism endures remains an open bet. Another post said what is needed now are “passive flows,” strong volume to support newly revisited levels and turn them into strong support.