Bitcoin is trading near a key level that has served as strong support throughout the nearly three-year uptrend amid signs of de-escalation in US-China trade tensions.
That key level is the 50-week simple moving average (SMA), which has acted as a springboard that has fueled bullish momentum, refreshing for a major upward move at least three times since 2023. Let’s see if BTC bulls are lucky a fourth time, as prices are trading near the 50-week SMA at around $102,900.
Recent developments in US-China trade relations support the bullish case. According to media reports, China said early Wednesday that it will suspend its additional 24% tariff on US goods for a year while keeping the 10% tax.
The Treasury Department confirmed it will halt retaliatory tariffs 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 halve its fentanyl-related tariffs on Chinese goods.
The continued easing of trade tensions could eliminate a major source of uncertainty for the global economy and support increased risk-taking across the economy and financial markets.
However, other factors are less supportive of Bitcoin at the moment – most notably the decision by Sequans Communications to offload its BTC holdings to retire half of its convertible debt. Until now, the narrative of treasury assets had centered solely on accumulation, so this move may shake that perception.
