bitcoin is trading near a key level that has served as strong support during the nearly three-year uptrend, amid signs of easing trade tensions between the United States and China.
That key level is the 50-week simple moving average (SMA), which has acted as a springboard, fueling bullish momentum, refreshing for a larger upward move at least three times since 2023. Let’s see if BTC bulls get lucky for the fourth time as prices trade near the 50-week SMA at around $102,900.
The latest development in US-China trade relations supports the bullish argument. According to media reports, China said early Wednesday that it will suspend its additional 24% tariff on U.S. goods for one year, keeping the 10% tax in place.
The Ministry of Finance confirmed that it will stop retaliatory tariffs imposed on US agricultural products, including soybeans, corn, wheat, sorghum and chicken, starting Monday.
The move follows a meeting last week between President Donald Trump and his Chinese counterpart, Xi Jinping, and Washington’s decision to cut fentanyl-related taxes on Chinese products by half.
The continued easing of trade tensions could remove a major source of uncertainty for the global economy, supporting greater risk-taking across the economy and financial markets.
However, other factors are less supportive of Bitcoin at the moment, notably Sequans Communications’ decision to dump its BTC holdings to retire half of its convertible debt. Until now, the Treasury asset narrative has focused solely on accumulation, so this move may alter that perception.
