Bitcoin's price surged past $105,700 on May 12, following an agreement between the US and China to reduce tariffs that had significantly affected trade. The deal entails lowering US tariffs on Chinese goods from 145% to 30%, while China will cut its duties on US imports from 125% to 10%. This resolution sparked a broader market rally, enhancing liquidity and risk appetite for assets like Bitcoin. The breakout pattern on Bitcoin's weekly chart has a projected target of $150,000, as determined by the height of the initial flagpole being added to the breakout point. However, Bitcoin's rapid ascent has raised concerns about potential short-term overheating, as the Cryptoasset Sentiment Index has shown its highest levels since November 2024, suggesting possible corrections may follow. Currently, Bitcoin is retracing after hitting above $107,000, and analysts observe that the next support level sits around $100,000, indicating a critical point for potential price action in the near term.

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