Today, the price of Bitcoin rose above $105,000 after a significant breakthrough in trade negotiations between the USA and China. The king of cryptocurrencies reached a price of $105,705 as trading activity increased in the financial markets.
Although there has been a slight decrease since then, bullish pressure remains strong in the spot and derivatives markets for Bitcoin, indicating the likelihood of sustained price growth.
Bitcoin reaches $105,000 amid trade agreement between the USA and China
On Monday, the two economic superpowers, the USA and China, announced a 90-day agreement to reduce tariffs, sparking new optimism in global markets. Under the deal, the United States will reduce tariffs on Chinese imports from 145% to 30%, while China will lower tariffs on American goods from 125% to 10% over the same period.
The announcement caused a surge in trading activity in the crypto market, pushing the price of Bitcoin above the psychological mark of $105,000 for the first time in weeks. After a few moments, the token peaked at $105,705 and then experienced a decline.
Although its price has since decreased to $104,397 at the time of publication, on-chain indicators signal a significant presence of bullish sentiment in the markets.
For instance, the long/short ratio of the token reflects a bullish bias in the futures market. At the time of publication, this figure is 1.07. This metric compares the number of long positions (bets on price increases) to short positions (bets on price decreases) in the market. When its value is below one, traders are betting on a decrease in the asset's price.
Conversely, when the long/short ratio of the asset exceeds 1, it indicates that there are more long positions than short ones, suggesting that traders are mainly betting on price increases.
This indicates that market sentiment is predominantly bullish among Bitcoin futures traders, and traders expect sustained price growth in the short term.
Additionally, the trend in the option market for the token, where demand for call options has increased, supports this bullish forecast. When demand for call options exceeds demand for put options in the token's options market, it signals growing bullish sentiment as more traders bet on price increases.
The growth of Bitcoin faces a test
This increase in bullish derivatives activity often reflects broader expectations of price increases among Bitcoin investors. If buying pressure remains, the token could rise above $105,000 again. If potential support at $105,668 holds, it could push Bitcoin to its historical high of $109,312.
However, on the daily chart, the Chaikin Money Flow (CMF) of Bitcoin has begun to decline, forming a bearish divergence with its price.
Divergence occurs when the price of the asset moves in one direction, but an indicator, such as the CMF, moves in the opposite direction. In this case, although the price of Bitcoin is rising, the CMF is declining, signaling a decrease in buying pressure. If this continues, the price of Bitcoin could fall to $101,070.#BinanceSquare #Write2Earn #TradeWarEases #NewsTrade #StrategyTrade $BTC
