Bitcoin Eyes $120K Amid US-China Tariff Truce
Bitcoin Stages Comeback Amid Tariff Pause
Bitcoin (BTC) experienced a resurgence, climbing above $119,000 on Sunday as bulls responded to a recent dip to two-week lows. This rally coincides with a pause in the ongoing trade disputes between the United States and China, sparking renewed optimism in the market.
Volatility Returns as Bitcoin Approaches Key Levels
Data from Cointelegraph Markets Pro and TradingView indicates that BTC/USD is nearing a critical resistance area. The cryptocurrency is attempting to close above its 10-day simple moving average after rebounding from approximately $114,500, overcoming the impact of a substantial BTC sell-off.
The positive price movement occurred following news of the US and China agreeing to extend the suspension of reciprocal trade tariffs.
Analyst Perspectives on Bitcoin's Next Move
Market participants are closely monitoring key price levels as the new week begins.
Crypto investor Ted Pillows noted on X, "$BTC needs to break above $119.5K for a big move. If that doesn’t happen, this consolidation will continue. I think BTC could break above this level next month which will start the next leg up.”
Rekt Capital, a well-known trader and analyst, identified a slightly higher resistance level near $120,000.
"Bitcoin has Daily Closed above the blue Range Low, kickstarting a break back into the very briefly lost Range,” he told X followers alongside a print of the daily BTC/USD chart.
Conversely, CrypNuevo suggested that the price might still target the downside wick formed during the dip to $114,500, which aligns with an area of exchange order-book liquidity. “If we zoom out, we can see that the main liquidation level is at $113.8k,” he commented. “Consequently, I consider the downside liquidation cluster to be the natural target in the mid-term ($114.5k-$113.6k).”
Liquidation Levels and Potential Price Swings
Data from CoinGlass indicates a "max pain" point for BTC shorts around $119,650. A move towards all-time highs near $123,000 could trigger over $1.1 billion in short liquidations.
Coinank's analysis of liquidity data also points to strong resistance between $119,000 and $120,000, characterized by dense liquidation clusters.
TheKingfisher cautioned about increased volatility in the short term, noting that dealers are heavily short gamma, potentially amplifying price swings to hedge their positions.
Disclaimer: This information is not financial advice. Trading and investing in cryptocurrencies involve risk. Conduct thorough research before making any decisions.