Bitcoin Price Consolidates Near $104K After US-China Deal
Bitcoin (BTC) traded around $104,000 at the May 12 Wall Street open, consolidating after recent gains fueled by positive US-China trade deal news. The agreement led to a surge in US stocks (S&P 500 and Nasdaq Composite gained roughly 3%) and strengthened the US dollar, with the DXY index hitting a one-month high.
Market Reactions to US-China Trade Deal
The deal resulted in a mixed reaction across asset classes. While stocks and the US dollar rose, gold prices fell sharply, nearing month-to-date lows at $3,208 per ounce. Bitcoin occupied a middle ground, consolidating its recent gains.
Key observations:
- Bitcoin consolidated after reaching its highest point since late January.
- Order book liquidity suggests potential price targets for traders, with $102,000 being a key level.
- A successful retest of the 50-week exponential moving average (EMA) — a strong indicator — suggests a potential new all-time high.
According to CoinGlass data, significant buying pressure was observed around the $103,000 mark after the Wall Street open. Traders highlighted the $102,000 region as a dense area of potential liquidation clusters, suggesting further price action in that vicinity.
Potential for New Bitcoin All-Time High
Several analysts have voiced bullish predictions, referencing the successful retest of the 50-week EMA at $80,300. Historically, this EMA has acted as a support level for subsequent all-time highs. The convergence of this technical analysis signal with the positive market sentiment fueled by the US-China trade deal increases the likelihood of further price appreciation.
Disclaimer: This analysis does not constitute investment advice. Conduct thorough research before making any investment decisions.
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