- China has reduced its crypto duty; Bitcoin rose instantly to above $105,000.
- The US-China agreement increased global risk sentiment, which is positive for digital assets.
- Bitcoin still holds above key Fibonacci levels as it shows bullish technical signals.
Bitcoin jumped to $105,000 on May 12 after an abrupt demand for Bitcoin caused by China’s decision to reduce its crypto tariffs from 125% to 10%. On Bybit, the Bitcoin price rose to $105,361,800 in the first trading hours, posting a significant intraday increase of 1.42%. However, within a short five-minute window, BTC rose from $103,750.00 to a peak of $105,467.00.
In addition, traders quickly reacted to the surprise policy change, aware that the tariff rollback was a significant move towards easing regulatory pressure on crypto activities in Asia. The marketplace observes it as a vital step, the shift illustrating a more relaxed regulatory environment and setting China up to drive broader crypto acceptance across Asia.
US-China Trade Truce Boosts Risk Appetite
After signing an agreement between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, whereby China would reduce tariffs on products in the United States by 2%, the rally gained further drive. Following months of talks, the agreement marked the first significant de-escalation of these nations’ tensions since the beginning of 2024.
Global markets responded well after the announcement. Futures on the S&P 500 rose 2.8%, while the U.S. dollar gained 0.7%. On the other hand, gold declined by 2.3%, which is a sign that investors were getting off defensive assets and returning to riskier investments.
Furthermore, in the backdrop of geopolitical changes, when trading money sought to realign its holdings, Bitcoin, which was known for its volatility, surpassed standard assets.
The end of the tariff disagreement has lifted a significant component of uncertainty in the global macroeconomic situation. With diminishing economic pressures and more stable trade relationships, as well as increased global liquidity, investors are putting more money into digital assets.
Technical Indicators Confirm Bullish Momentum
As of press time, Bitcoin is currently trading at $104,369.99, with a 0.9% change compared to its day’s high of $104,528.92 on Binance. Despite clear signs of consolidation, the bullish momentum is still visible from current technical indicators, with consolidation signals looming around the recent high levels.
The RSI of 66.98 still sits comfortably just below the 70 level, where overbought conditions are indicated. The situation shows a clear tendency towards bullishness, but the strength in the increase may be fading.
In addition, the MACD continues to sit above its zero line, with numbers 1,516.04 (MACD line) and 1,305.62 (signal line). Closing between the MACD indicators signals a slower momentum rate, but bulls continue to dominate the market trend.
Bitcoin remains strong, trading around $104,512.48. According to Fibonacci retracement analysis, support is at about $100,550, with additional support at $98,180. Resistance is anticipated around the area of the most recent high, roughly at $104,984.
Furthermore, as much as the daily trading figures exceed $50 billion and market capitalization is more than $2.07 trillion, the belief that Bitcoin’s future stability is not in doubt grows. With the current macro outlook, specialists expect Bitcoin may rise to about $150,000.
