$BTC Cryptocurrency growth is gaining momentum as China injects 1 trillion yuan into the markets and cuts key interest rates by 0.1%.
Bitcoin is reclaiming key Fibonacci levels as technical indicators show strength near the $98,000 resistance zone.
Traders are watching the trade negotiations between the US and China in Switzerland, as macroeconomic tailwinds are boosting global risk appetite.
Bitcoin is trading near the $97,000 mark, up nearly 3% in the last 24 hours and significantly bouncing back from March lows around $74,000.
The price increase occurred against the backdrop of significant events in the global economy, primarily aggressive moves by China to ease monetary policy and rising hopes for easing trade tensions between the US and China.
China injects 1 trillion yuan, increasing Bitcoin's attractiveness.
At a high-profile press conference on May 7, the head of the People's Bank of China (PBoC) Pan Gongsheng announced a 0.5% reduction in the reserve requirement ratio (RRR) and a 0.1% cut in interest rates. About 1 trillion yuan (approximately 138 billion USD) will be injected into the market.
Such a large liquidity injection is typically seen as a bullish trend for Bitcoin for two main reasons. First, lower interest rates and a more accommodating monetary policy often weaken fiat currencies, prompting investors to seek alternative savings vehicles such as BTC.
Secondly, considering that Chinese stocks and bonds have shown low momentum in recent months, cryptocurrencies may attract speculative flows from domestic and international investors seeking higher yields and hedge assets.
This week, hopes are rising for de-escalation of trade between the US and China.
An upcoming important trade meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, scheduled to take place in Switzerland at the end of this week, will complement the macroeconomic situation.
With existing US tariffs up to 145% on some Chinese goods and retaliatory Chinese tariffs up to 125%, the economic implications are enormous. Recent rhetoric from both sides has focused on de-escalation and 'equal consultations,' suggesting a mutual desire to prevent further economic strain.
Notably, stability in trade boosts investor confidence and alleviates concerns about inflationary shocks or growth slowdowns that could put significant pressure on speculative markets such as cryptocurrencies.
Technical characteristics of Bitcoin: approaching key resistance amidst consolidation.
From a technical perspective, Bitcoin is approaching serious resistance near the $98,000 level — the peak of the Fibonacci retracement zone from the low of $74,427 to the high of $98,006.
BTC has already reclaimed the Fibonacci retracement level of 0.618 at $86,217 and 0.382 at $88,999, signaling strong bullish momentum. The 0.236 level at $92,442 serves as support, with prices consolidating just below the local high.
MACD remains in bullish territory, although the histogram shows signs of waning momentum. The signal line and MACD line are starting to converge, indicating a potential crossover if bullish strength does not gain traction soon.
The balance of power (BOP) is currently neutral at 0.05, indicating that buyers do not fully control the situation, but are also not giving up their positions. It is clear that BTC is in a consolidation phase.
