Bitcoin is trading near a key level that has served as strong support throughout the nearly three-year-long uptrend, amid signs of de-escalation in U.S.-China trade tensions.
That key level is the 50-week simple moving average (SMA), which has acted as 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 development in U.S.-China trade relations supports the bullish case. According to media reports, China said early Wednesday that it will suspend its 24% additional tariff on U.S. goods for a year, while retaining the 10% levy.
The Ministry of Finance confirmed that it will halt retaliatory tariffs imposed on U.S. 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 levies on Chinese goods.
The continued easing of trade tensions could eliminate a significant source of uncertainty for the global economy, supporting increased risk-taking across the economy and financial markets.
Other factors, however, are less supportive of Bitcoin at the moment—particularly the decision by Sequans Communications to offload its BTC holdings to retire half of its convertible debt. Until now, the treasury asset narrative had been solely centred on accumulation, so this move may shake that perception.
