Impact of US-China Trade War Easing on BTC:
Overall Impact: Bullish for BTC
• BTC price reached $104,394 on May 12, 2025, showing a strong upward trend.
• The easing of the US-China trade war has boosted global investment confidence, leading to an influx of capital into risk assets, including cryptocurrencies.
• Market risk appetite has increased, with investors choosing to allocate funds to high-yield assets like BTC as demand for safe-haven assets declines.
Bullish Factors:
1. Increased Risk Appetite: The easing of the trade war has enhanced global market confidence, leading investors to increase their allocation to risk assets (including BTC).
2. Institutional Capital Inflow: With market stability, institutional investors are more willing to invest in the cryptocurrency market.
3. Weakened Dollar Pressure: Despite a stronger dollar, demand for risk assets remains, providing support for BTC.
4. ETF Capital Inflow: Increased demand for BTC ETFs brings in new funds.
Risks to Watch:
• If the trade war heats up again, market confidence will be affected, and BTC may once again become a safe-haven asset, but volatility will increase.
• If the dollar continues to strengthen, BTC may face downward pressure in the short term.
Summary:
Currently, the easing of the US-China trade war is bullish for BTC, especially with the inflow of risk capital into risk assets.
📈 Technical Analysis
Key Support Levels:
• $103,818: 50-day Exponential Moving Average (EMA), providing strong support.
• $103,080: Lower edge of the previous consolidation range, a drop below this level may trigger a deeper correction.
Key Resistance Levels:
• $106,750: Short-term technical resistance level, needs to break through to continue the upward trend.
• $107,300: Psychological barrier, breaking through may challenge historical highs.
