Key takeaways:
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Bitcoin broke up to $ 105,700 after US and China collapsed with tariffs.
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A confirmed Bull flag breakout in the weekly project chart of a $ 150,000.
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The index of the Bitwise sentiment warns the potential heating of short-term heating.
Bitcoin (Btc) Bulls strengthened a major progress in the ongoing US-China tariff conversation, along with the climb of cryptocurrency to the $ 105,700 mark on May 12 for the first time in four months, further confirming a continuation setup with a $ 150,000 target price.
The US-China Trade Truce Fuels Bitcoin Boom
The catalyst behind Bitcoin’s breakout appears to be de-escalating Trade tensions between the US and China.
On the weekend, US Secretary of Treasury Scott bet And Chinese vice president Lifeng has injured a Deal in Geneva to reduce tariffs that have been crippled by bilateral trade for months.
Under the deal, the US will lower the tariffs on Chinese goods from 145% to 30%, while China will reduce its duties in US imports from 125% to 10%.
Related: US-China Trade Deal may light the Bitcoin use case: Traders
The agreement triggered a broad-based market rally, with S&P 500 futures rising by 2.8% and the US dollar gained 0.7%. In contrast, gold dropped 2.3%, signing a move from safe properties.
Bitcoin, often seen as a Assets of high beta risksuffered under the weight of the trade war, with increasing investor caution that prevents crypto flows. Truce now signed improved liquidity and risk, historical conditions that are desirable for BTC rallies.
Bull Flag’s breakout points to $ 150k target
Bitcoin’s current rally follows the breakout of the book -study of a bull pattern In the weekly chart, a bullish continuation of the continuation of the bullish formed when the price rolled down into a parallel channel after a sharp upward move.
In Bitcoin’s case, the flag began to form after BTC which sank nearly $ 110,000 in January. Integration -joint continued for several months until early May when the price broke above the upper flag line with a slight increase in volume.
This breakout confirms the continuation of bullish, with the expected target pattern sitting now sitting near $ 150,000, measured after the addition of the initial flagpole to the breakout point.
Momentum indicator, including Relative Strength Index (RSI).
BTC can return to $ 100,000 first
Some analysts are urging the caution because the emotion of bitcoin becomes euphoric.
André Dragosch, head of research in Europe in Bitwise, Notes That the company’s Cryptoasset’s sentimental index has reached the highest level since November 2024, a level previously aligned with local markets.
The chart shows that previous emotional peaks, such as in April 2022, October 2023, and November 2024, were followed by short -term corrections or actions on sideways prices.
This indicates the growth of optimization can be stretched, which increases the risk of a near term pullback despite the strong bitcoin perspective.
The price of Bitcoin has reeled following its climb above $ 107,000 to May 12, with the sun -sun RSI that is concerned about excessive conditions.
The next target support sits around $ 100,000, aligned with the 0.786 Fibonacci Retracement Line.
A decisive collapse below the level may have BTC that tests the exponential transfer of the average (EMA) supporting below, along with the 20-day EMA (the purple wave) around 97,385 as the initial target downside.
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
