Bitcoin surged above $105,700 following an agreement between the US and China to reduce tariffs, confirming a bullish continuation setup with a $150,000 price target. The deal involves the US lowering tariffs on Chinese goods from 145% to 30%, while China reduces duties on US imports from 125% to 10%. This agreement triggered a broad-based market rally, with S&P 500 futures rising and the US dollar gaining, while gold dropped, indicating a shift away from safe-haven assets.
The current Bitcoin rally follows a bull flag breakout on the weekly chart, a bullish continuation pattern formed after a sharp upward move. Momentum indicators, including the relative strength index (RSI), support this breakout, reflecting renewed buying pressure without entering overbought territory.
However, some analysts caution about potential short-term overheating, as Bitwise’s sentiment index reached its highest level since November 2024, historically aligning with local market tops. A near-term pullback could see Bitcoin return to around $100,000, aligning with its 0.786 Fibonacci retracement line.
— new from Cointelegraph