U.S.-China trade deal fails to boost crypto โ Key levels BTC must reclaim to avoid deeper correction
โก๏ธ Recent BTC Price Action Recap:
โ๏ธ May 8-10: Bitcoin surged from $96K to $104K, breaking major resistance
โ๏ธ This week: BTC was expected to continue the uptrend
โ๏ธ May 13: BTC fell to $102K, struggling to hold support
This sudden dip has left traders questioning whether this is a healthy correction or the start of a deeper retracement.
โก๏ธ Why Did Bitcoin Fall Today? Key Reasons:
1. Weak U.S.-China Trade Deal Impact:
Tariffs reduced (U.S. 145% โก๏ธ 30%, China 125% โก๏ธ 10%)
Deal seen as โtemporaryโ and lacking solid commitments
No clear agreements on energy, agriculture, or major goods
Analysts criticized it as political theater, not economic relief
Market Response:
โ USD strengthened, making risk assets like crypto less attractive
โ Investors rotated back to traditional equities
โ Bitcoin lost momentum as a hedge play
2. Technical Rejection Near $104K:
$104K was a strong resistance zone from earlier price consolidations
BTC faced heavy sell pressure from profit-takers
Low trading volume on the breakout attempt increased vulnerability
Failure to close above $104K led to a pullback toward $102K
โก๏ธ Technical Analysis: Key BTC Support & Resistance Levels
Support Levels to Watch:
$102K: Current level, acting as immediate support
$100K: Psychological & technical key level โ must hold to prevent bearish shift
$96K: Next major support, coincides with moving averages and Fibonacci retracement zone
$92K-$94K: Strong demand zone where bulls previously defended aggressively
Resistance Levels to Reclaim:
$104K: Immediate resistance, breakout level rejected
$109K: Next upside target if $104K is reclaimed
$114K-$116K: Strong resistance from previous highs
$146K: Potential medium-term bullish target if breakout succeeds
โก๏ธ Indicators & Market Sentiment
RSI (Relative Strength Index):
Currently cooling off from overbought levels
Suggests a healthy correction, not immediate trend reversal
Volume Profile:
Recent breakout lacked strong volume
Bullish continuation requires higher participation from buyers
Market Sentiment:
Mixed reactions โ macro uncertainties easing, but traders cautious
Some see the dip as a buying opportunity before next leg up
Others expect consolidation between $96K-$104K before clear direction
โก๏ธ Is This a Smart Buy-the-Dip Opportunity?
Bullish Arguments:
โ
Long-term uptrend intact above $100K
โ
Corrections after strong rallies are normal
โ
Macro tailwinds (ETF inflows, institutional adoption) still positive
Bearish Risks:
โ Failure to hold $100K could trigger retest of $96K or lower
โ Weak trade deal reduces safe-haven demand
โ Strengthening USD could continue pressuring crypto
Verdict:
If BTC holds above $100K and breaks $104K with volume, the bull run could resume toward $109K and higher.
If $100K fails, expect a correction to $96K or $94K.
โก๏ธ Conclusion:
Bitcoin is at a critical juncture.
The $100K-$104K range will decide whether this is just a temporary dip or the start of a deeper correction.
Technical indicators suggest caution but not panic.
Traders should watch for volume spikes and key level confirmations.
