Bitcoin is trading near a crucial level that has provided strong support throughout the nearly three-year uptrend, amid indications of de-escalation in U.S.-China trade tensions.
This critical level is the 50-week simple moving average (SMA), which has acted as a trampoline, fueling bullish momentum and facilitating larger upward movements at least three times since 2023. Let’s see if BTC bulls get lucky a fourth time as prices hover around the 50-week SMA at about $102,900.
The latest updates in U.S.-China trade relations bolster the bullish outlook. Reports indicate that China announced on Wednesday that it will suspend its 24% additional tariff on U.S. goods for a year, while keeping the 10% levy.
The Ministry of Finance confirmed it will stop retaliatory tariffs on U.S. agricultural products, including soybeans, corn, wheat, sorghum, and chicken, starting Monday.
This decision follows a meeting last week between President Donald Trump and Chinese President Xi Jinping, as well as Washington’s move to halve its fentanyl-related levies on Chinese goods.
The ongoing relaxation of trade tensions could reduce a significant source of uncertainty for the global economy, encouraging increased risk-taking in both the economy and financial markets.
However, other factors are less favorable for Bitcoin at this time—particularly Sequans Communications’ decision to sell its BTC holdings to reduce half of its convertible debt. Until now, the narrative surrounding treasury assets has been focused solely on accumulation, so this action may alter that perception.
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