Bitcoin price surges above $105,000 today as easing trade tensions between the U.S. and China spark fresh optimism in global markets. Although BTC briefly pulled back, strong bullish momentum in both spot and derivatives markets points to a potential continuation of this rally.
US-China Deal Sparks Market Momentum
On Monday, the U.S. and China reached a temporary 90-day tariff relief agreement. The U.S. will cut tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on U.S. goods from 125% to 10%.
This breakthrough triggered a surge in global trading activity. As a result, Bitcoin soared to $105,705, its highest level in weeks, before retreating slightly to around $104,397 at the time of writing.
Futures Market Signals Strong Bullish Sentiment
On-chain data reveals increasing bullish sentiment in Bitcoin’s futures market. The Long/Short Ratio has climbed to 1.07, suggesting more traders are betting on further price gains.
A ratio above 1 means that the number of long positions exceeds short ones. This is a clear indication that traders expect prices to rise.
Options Market Shows Growing Demand for Calls
Further supporting the bullish trend, demand for call options has outpaced puts in BTC’s options market. Call options give traders the right to buy Bitcoin at a set price, usually indicating bullish bets.
This increased demand suggests that more investors are preparing for a continued price climb.
Bitcoin Tests Key Levels Amid Mixed Indicators
If buying pressure continues, Bitcoin could push past $105,668, a critical support level. Surpassing it may set BTC on track to challenge its all-time high of $109,312.
However, not all indicators are in agreement. The Chaikin Money Flow (CMF), a measure of market inflows and outflows, has started to decline. This creates a bearish divergence, where the price climbs but buying pressure weakens.
If the CMF continues to drop, Bitcoin could correct to $101,070, presenting a key test for bulls.
Outlook: Can Bitcoin Hold the Line?
For now, Bitcoin remains in bullish territory. But with mixed signals across charts, traders should watch key support and resistance zones closely. Whether BTC consolidates or breaks higher will depend on how long the market optimism lasts.
