Crypto News: Bitcoin at a Make-or-Break Point as China Lifts Tariffs on U.S. Goods

Bitcoin steadies near $100K as China lifts tariffs on U.S. goods, boosting sentiment. Analysts eye $102.9K support.

Bitcoin is hovering around $100,000 after two days of heavy losses. 

The drop tested the lower edge of its three-year uptrend, marked by the 50-week SMA. That line, which is currently near $102,900, has supported the price several times since 2023. 

Each time Bitcoin touched it, a fresh rally followed.

China Suspends Tariffs

Market optimism got a lift this week after China announced it would suspend additional tariffs on US products. 

The decision came after recent talks between US President Donald Trump and Chinese President Xi Jinping, who agreed to a one-year pause on certain trade levies.

The Chinese Ministry of Finance confirmed the suspension of its 24% additional tariffs on US goods. However, it intends to keep a 10% levy in place. The measure applies to agricultural products like soybeans, corn, wheat, sorghum and chicken.

Bitcoin Reacts to Easing U.S.-China Tensions

China’s move to lift tariffs was seen as a sign of easing tensions between the world’s two largest economies. This development improved investor confidence after weeks of uncertainty that had caused risk aversion across financial markets.

The decision follows the US government’s choice to reduce its fentanyl-related levies on Chinese goods. Both sides described the outcome as a step toward stable trade relations.

Markets reacted quickly. Bitcoin, which had fallen below $99,000 earlier in the week, rebounded above $100,000 as traders welcomed the news. Data from TradingView showed a short-lived rally toward $102,000 before sellers returned.

Analysts are now noting that the $102,900 price level should be watched closely. Bitcoin’s RSI has rebounded from oversold levels near 30 to around 33, and is showing that the selling may be easing up.

This being said, if momentum continues to improve, Bitcoin could target a short-term move toward $105,000.

Trade Relief Brings Broader Market Stability

The trade tensions being eased has had ripple effects across markets. Equities in Asia and Europe opened higher on Wednesday and risk assets like cryptocurrencies found some footing.

The suspension of tariffs has therefore eliminated one source of fear that had affected on investor sentiment. For Bitcoin, which often tracks global risk trends, this could encourage fresh demand.

However, there are still a few macroeconomic pressures to digest. 

Investors are still eyeing the slower global growth and tighter conditions in major economies. 

Sequans Communications Sale Dampens Sentiment

Not all recent news has favoured Bitcoin. Semiconductor company Sequans Communications revealed that it sold its Bitcoin holdings to retire half of its convertible debt.

Until now, many corporations that held Bitcoin on their balance sheets had been adding to their reserves rather than selling. Sequans’ move now stands as one of the few liquidations among public firms this year.

The sale thus begs a few questions. Might more companies offload holdings if the market weakness continues? 

Analysts are noting that the event may temporarily dent the “corporate treasury” narrative that has supported Bitcoin’s appeal over the last few months.

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