Bitcoin surged past $105,700 following a key agreement between the US and China to reduce tariffs, marking a significant milestone after months of stagnation. This bullish momentum is amplified by a confirmed bull flag breakout on the weekly chart, suggesting a price target of $150,000. The deal reduced US tariffs on Chinese goods from 145% to 30% and China's duties from 125% to 10%, signaling an improved market environment. Despite the positive market reaction, including a 2.8% rise in S&P 500 futures, caution is warranted as Bitcoin's sentiment index reached its highest since November 2024. Analysts indicate that previous sentiment peaks coincided with market corrections, raising concerns about potential short-term pullbacks. Currently, Bitcoin’s price is tracing back toward the $100,000 support level, aligning with its Fibonacci retracement, which if breached could lead to further declines. Overall, while the long-term outlook for Bitcoin remains bullish, near-term volatility may arise due to heightened sentiment.

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