Bitcoin Approaches Critical Support Amid U.S.-China Trade Easing

Bitcoin Nears Crucial Support Level

Bitcoin (BTC) is trading close to a pivotal support level, the 50-week simple moving average (SMA), which has consistently fueled bullish momentum throughout its nearly three-year uptrend. Currently hovering around $102,900, this level has historically acted as a launchpad for upward movements.

Impact of U.S.-China Trade Developments

The recent softening of trade tensions between the U.S. and China bolsters the bullish outlook for Bitcoin. China announced a suspension of its 24% additional tariff on U.S. goods for a year, maintaining only a 10% levy. This move is part of broader efforts to ease trade restrictions, following a meeting between U.S. President Donald Trump and China's President Xi Jinping.

The easing of trade tensions could reduce global economic uncertainty, encouraging risk-taking in financial markets. However, not all factors are favorable for Bitcoin. Sequans Communications recently decided to liquidate its BTC holdings to reduce convertible debt, challenging the prevailing narrative of Bitcoin as a treasury asset.