Bitcoin at Make or Break Level as China Suspends 24% Tariff on U.S. Goods

Bitcoin (BTC), currently priced at $102,108.42, is trading near a critical level of support that has provided stability during a nearly three-year-long uptrend. This pivotal level is the 50-week Simple Moving Average (SMA), which has repeatedly acted as a bullish trampoline, triggering upward momentum for Bitcoin at least three times since 2023.

The 50-week SMA, positioned around $102,900, is under scrutiny as Bitcoin approaches it once again. Traders are watching closely to see if Bitcoin bulls can capitalize on this level for a potential fourth rally, following the historical pattern of upward movement from this support.

The recent thaw in U.S.-China trade tensions bolsters Bitcoin's bullish outlook. China’s announcement early Wednesday to suspend its 24% additional tariff on U.S. goods for one year is a major development. Furthermore, the Ministry of Finance stated that it would halt retaliatory tariffs on U.S. agricultural products such as soybeans, corn, wheat, sorghum, and chicken starting Monday.

This move by China follows last week’s meeting between President Donald Trump and President Xi Jinping. It also coincides with Washington’s decision to halve its fentanyl-related tariffs on Chinese goods, marking a significant step in reducing trade-related tensions. The easing of these tensions could remove uncertainty from the global economy, potentially encouraging risk-taking across financial markets.

Despite the easing trade tensions, not all indicators favor Bitcoin. A major concern has arisen after Sequans Communications decided to sell its Bitcoin holdings to retire half of its convertible debt. This breaks the previous 'treasury asset' narrative, which was primarily focused on Bitcoin accumulation, and may introduce uncertainty regarding Bitcoin’s institutional role.