Bitcoin surpasses $105,000 thanks to US-China deal, waiting for $127,000 mark

US-China deal fuels cryptocurrency market

Global financial markets, especially the cryptocurrency sector, have just received a big boost after the news that the US and China have reached a temporary agreement on trade. According to a joint statement after lengthy negotiations in Geneva (Switzerland), the world's two largest economies agreed to significantly reduce tariffs on each other's goods within 90 days.

Specifically, the US pledged to lower import tariffs on Chinese goods from 145% to 30%. In response, China also reduced tariffs on US goods from 125% to 10%.

This move is considered to cool down trade tensions, in the context of the global economy facing the risk of recession. In addition, the two sides also established a regular dialogue mechanism, co-chaired by Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer.

The news immediately had a ripple effect. Both the yuan and the dollar rose, but it was the cryptocurrency market that really caught fire. Bitcoin, the market leader, was given a powerful boost, officially surpassing the $105,000 mark.

As of the afternoon of May 12, the price of Bitcoin reached a daily peak of $105,505, up 1.75% from 24 hours earlier. This increase also brought the total market capitalization to about $2,090 billion (up 1.76%). BTC's daily trading volume also jumped 17.8% from the previous day, indicating that demand is rising. Since the beginning of May, Bitcoin has increased by a total of 25%, indicating a stable and sustainable upward trend.

Not only bitcoin, major altcoins also benefited. Specifically, ethereum (ETH) increased by more than 2.7%, approaching the $2,600 mark, ripple (XRP) increased by 2.17%, fluctuating around $2.41 and solana (SOL) increased by 1.6%.

Bitcoin has just officially surpassed the impressive $105,000 mark, largely thanks to positive signals from the US-China trade deal (Illustration: Tradingnews.com).

Bitcoin accumulates near strong resistance level of 106,433 USD/BTC

While the positive news from the US-China deal was a major catalyst, bitcoin’s technicals paint a more cautious picture. After hitting a high of $105,505, the price has shown signs of slowing down and is currently consolidating below a strong resistance zone at $106,433.

According to technical analysts, the $106,433 threshold is no coincidence. It is a barrier that has repeatedly halted Bitcoin’s rise since December 2024. It also coincides with the midpoint of a long-term uptrend channel, making it an important resistance zone both technically and psychologically.

Currently, the market structure of bitcoin remains positive, with a steady stream of higher highs and higher lows - a clear sign of an uptrend. However, the price zone around $106,433 is acting like a “pressure cooker lid”, compressing the upside momentum. On the chart, the price pattern is gradually narrowing (apex), like a spring ready to spring in both directions.

The closer the price gets to the resistance zone without breaking the old low, the greater the chance of a breakout to the upside. As long as the higher lows hold, the bullish scenario continues to prevail.

Is the goal of 127,000 USD within reach?

According to experts, the decisive factor for the next breakout is trading volume. Although the volume has increased compared to before, it is not enough to confirm a new trend. The buyers are still in a waiting state, needing more clear signals to "strongly" enter the market.

The scenario that breakout traders are looking for is for bitcoin to close the daily or weekly candle convincingly above the $106,433 level, accompanied by a surge in volume. If that happens, it would be a strong technical signal that buyers are in control of the market and prices could surge.

The next target in case of a successful breakout is the $127,600 area - the upper end of the long-term ascending channel. Once the $106,433 barrier is broken, the price could rise very quickly, taking Bitcoin into a new growth phase in the current bull cycle.

However, if volume is not confirmed, bitcoin could continue to consolidate sideways for a few more days or weeks. However, the overall trend remains bullish, as long as the structure of higher lows is not broken.

The market is in an extremely sensitive phase. The combination of positive macro information and potential technical signals has investors holding their breath. Can bitcoin break through the key resistance level to move towards $127,000? The answer will depend largely on how trading volume develops in the coming days.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-vuot-105000-usd-nho-thoa-thuan-my-trung-cho-moc-127000-usd-20250513095946648.htm