Bitcoin (BTC) is trading near $104,000 USD on Monday, marking its highest level in four months. This rally follows a significant de-escalation in trade tensions between the United States and China, where both nations agreed to substantially reduce tariffs on each other’s goods.
https://cointelegraph.com/news/bitcoin-set-150k-btc-price-rally-us-china-slash-tariffsAnalysts now project a potential climb to $150,000, driven by favorable technical patterns and renewed investor confidence.
U.S.-China Tariff Reductions Fuel Crypto Optimism
Over the weekend, U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng announced a landmark agreement in Geneva to lower tariffs that had strained bilateral trade for months.
Under the deal:
- The U.S. will reduce tariffs on Chinese imports from 145% to 30%.
- China will cut duties on U.S. goods from 125% to 10%.
This development triggered a broad-based market rally, with S&P 500 futures rising 2.8% and the U.S. dollar gaining 0.7%. Conversely, gold dropped 2.3%, indicating a shift away from traditional safe-haven assets.rs Point to $150K BTC Target
Bitcoin’s recent price action confirms a breakout from a “bull flag” pattern on the weekly chart—a bullish continuation setup that suggests a potential rise to $150,000.
This pattern formed after BTC peaked near $110,000 in January, followed by a period of consolidation. The breakout above the flag’s upper trendline, accompanied by increased volume, reinforces the bullish outlook.
Momentum indicators, such as the Relative Strength Index (RSI), support this view, with the weekly RSI rebounding above 65, reflecting renewed buying pressure without entering overbought territory.
Market Sentiment and Potential Pullbacks
While the long-term outlook appears positive, some analysts caution about short-term overheating.
André Dragosch, European Head of Research at Bitwise, notes that their Cryptoasset Sentiment Index has reached its highest level since November 2024—a level that previously aligned with local market tops.
This suggests that growing optimism may be stretched, raising the risk of a near-term pullback despite Bitcoin’s strong long-term prospects.
Broader Crypto Market Impact
The easing of trade tensions has not only benefited Bitcoin but also bolstered other major cryptocurrencies and traditional markets.
Ether (ETH) climbed 2.2%, Solana (SOL) rose about 1%, and XRP increased by 2.2%. The broader market responded positively, with S&P 500 futures up 2.7%.
Conclusion
The U.S.-China tariff truce has reignited investor confidence, propelling Bitcoin toward new heights. While technical indicators suggest a potential rise to $150,000, investors should remain cautious of short-term volatility.
As global trade relations improve and market sentiment strengthens, Bitcoin’s trajectory will be closely watched by both crypto enthusiasts and traditional investors alike.