Bitcoin Surges 5% to $105,000 on U.S.-China Trade Deal

Bitcoin initiated the weekly trade on a bullish note, with the price marking highs above $105,000 following the U.S.-China trade deal. This surge liquidated millions of shorts within hours, pushing the price beyond the psychological barrier of $105,000. This price movement indicated a significant rise in institutional accumulation, which surged by over 80,000 BTC in just one month of Q2 compared to the entire Q1.

Whales also joined in the accumulation, with one whale reportedly purchasing over $93.7 million worth of BTC. This substantial buy-in fueled bullish sentiments, reflecting rising confidence among investors. However, several indicators suggest that the price may soon experience a short-term pullback.

The Bitcoin long/short ratio has shifted towards the shorts, indicating that traders are increasingly considering the possibility of a rejection as the price reaches new highs. Additionally, the Call vs Puts ratio has surged heavily, supporting the bearish outlook. The put option gives the holder the right to sell the underlying asset, maintaining the possibility of a pullback.

Despite the bearish pressure, it is expected to be temporary as the open interest surges heavily. Open interest refers to the number of open trades that are yet to be closed, and an increase in these levels suggests that more traders are entering new positions. While the nature of these trades—whether bullish or bearish—cannot be determined, a rise in open interest generally raises optimism across the markets.

According to the analysis, the Bitcoin price may undergo a small pullback but is likely to hold support at $102,800 firmly. A rebound from these levels could propel the BTC price towards new highs, potentially forming a new all-time high (ATH) above $110,000.