Bitcoin Surges 2.4% to $105,461 on U.S.-China Trade Optimism
1min read Bitcoin (BTC/USD) surged above the critical $105,000 level on Monday, driven by optimism around U.S.-China trade talks and increasing interest in the broader cryptocurrency market. The world’s largest cryptocurrency touched an intraday high of $105,706 before settling around $105,461, marking a significant breakout from the recent consolidation range between $103,000 and $105,000.
Market sentiment shifted as reports emerged that the U.S. might reduce tariffs on Chinese imports, potentially easing global recession fears. This positive sentiment boosted Bitcoin’s appeal as a hedge against economic uncertainty, further supported by a stronger risk appetite among investors. The U.S. and China have reached a deal to cut tariffs by 115% for 90 days, indicating a possible easing of trade tensions. This could benefit both economies and improve relations.
Key market drivers include U.S.-China trade optimism, strong support at $103,818 (50-day EMA), and a bullish technical breakout above $105,000. Bitcoin price prediction remains bullish amid BTC recent breakout above $105,000 signals a potential shift in market momentum. The 50-day Exponential Moving Average (EMA) at $103,818 provided strong support during the consolidation phase, reinforcing bullish sentiment as the price held above this critical level.
The breakout now sets the stage for a potential rally toward the next major resistance at $106,750, with a further upside target at $107,300, aligning closely with the psychological $107,000 mark. The Moving Average Convergence Divergence (MACD) indicator is also turning bullish, with the histogram expanding and the MACD line crossing above the signal line. This suggests growing buying pressure, reinforcing the breakout. However, traders should watch for a potential pullback if Bitcoin fails to hold above the $105,000 support.
Key price levels to watch include immediate resistance at $106,750, next resistance at $107,300, immediate support at $105,000, next support at $103,818, and lower support at $103,080. While the breakout above $105,000 is a positive sign, the market remains vulnerable to downside risks. If Bitcoin fails to sustain this momentum, a pullback toward the immediate support at $103,818 is possible. A breach of this level could expose Bitcoin to a deeper correction toward $103,080, which coincides with a previous support zone and the lower boundary of the recent trading range. Traders should also keep an eye on the Relative Strength Index (RSI), which is approaching overbought levels, potentially signaling a short-term correction.
Ask Aime: "Which stocks should I consider buying now that Bitcoin has broken $105,000 and the market seems optimistic?"
