Bitcoin Eyes $150K After US-China Trade Truce — Is a $100K Retest Coming First?
Bitcoin (BTC) surged past $105,700 after a US-China tariff deal.
A confirmed bull flag breakout on the weekly chart sets a bullish target of $150,000.
Bitwise Crypto Sentiment Index signals potential short-term overheating.
Bitcoin Price Breaks $105K As Global Markets Rally
Bitcoin bulls are back in control. The world’s largest cryptocurrency shattered the $105,700 resistance on May 12 — a four-month high — driven by a pivotal breakthrough in US-China trade negotiations. The move confirms a bullish pattern pointing to an ambitious $150,000 BTC price target.
US-China Trade Deal Ignites Crypto Market Optimism
The rally’s catalyst? A fresh trade truce between US Treasury Secretary Scott Bessent and China’s Vice President He Lifeng in Geneva. The agreement slashes US tariffs on Chinese imports from 145% to 30%, while China cuts duties on US goods from 125% to 10%.
Global markets responded instantly:
S&P 500 futures surged +2.8%
The US Dollar Index (DXY) climbed +0.7%
Gold tumbled -2.3% as investors rotated into riskier assets like crypto.
With improved liquidity and risk appetite, Bitcoin — often labeled a high-beta risk asset — found strong upside momentum.
Bull Flag Breakout Targets $150,000
Technical traders are closely watching Bitcoin’s textbook bull flag breakout on the weekly chart. Formed after BTC peaked near $110K in January, the pattern consolidated for months before decisively breaking higher in early May.
Why it matters:
A bull flag is a classic bullish continuation pattern.
The projected target? Around $150,000, calculated by adding the height of the initial surge (flagpole) to the breakout point.
Meanwhile, Bitcoin’s weekly RSI rebounded above 65, showing strong buying pressure without yet breaching overbought conditions.
Short-Term Caution: Is Bitcoin Overheating?
Despite the breakout, some analysts warn of short-term risks. Bitwise’s Crypto Sentiment Index just hit its highest level since November 2024 — a zone historically associated with local market tops.
Previous sentiment spikes in April 2022, October 2023, and November 2024 led to short-term corrections or sideways action.
Could BTC Pull Back to $100K Before $150K?
As of May 12, Bitcoin began pulling back after topping $107,000, with its daily RSI nearing overbought territory. Immediate support lies at $100,000, coinciding with the 0.786 Fibonacci retracement level.
A drop below this could test:
20-day EMA around $97,385
Deeper EMAs if momentum weakens further.
Final Thoughts
Bitcoin’s long-term outlook remains bullish as macro conditions improve and technical patterns play out. But with sentiment heating up, a healthy pullback or consolidation around $100K wouldn’t surprise traders.
Is Bitcoin headed straight for $150K — or will a dip to $100K shake out weak hands first? Stay tuned.
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Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before making any trading or investment decisions.