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 trade tensions between the United States and China.
This key level is the 50-week simple moving average (SMA), which has acted like a trampoline, fueling bullish momentum, refreshing for a larger upward move at least three times since 2023. Let’s see if BTC bulls get lucky a fourth time as prices trade near the 50-week SMA at around $102,900.
The latest developments in trade relations between the United States and China support this bullish hypothesis. According to media reports, China announced Wednesday morning that it would suspend its additional 24% tariffs on American products for one year, while retaining the 10% levy.
The Treasury confirmed it would end retaliatory measures on U.S. agricultural products, including soybeans, corn, wheat, sorghum and chicken, on Monday.
The move follows a meeting last week between President Donald Trump and his Chinese counterpart, Xi Jinping, and Washington’s decision to halve fentanyl-related levies on Chinese products.
The continued easing of trade tensions could eliminate a significant source of uncertainty for the global economy, encouraging increased risk-taking across the economy and financial markets.
However, other factors are currently less favorable for Bitcoin, particularly Sequans Communications’ decision to dump its BTC holdings to pay off half of its convertible debt. Until now, the narrative around Treasury assets has focused solely on accumulation, so this move could shake that perception.
