- Bitcoin’s price is hovering around $94,000 as traders wait for news on a potential trade deal between the U.S. and China.
- The cryptocurrency is facing resistance in the $93,000-$95,000 range, but it could move higher if it breaks through.
Markets are currently cautious, hoping for a positive outcome in the trade discussions. This waiting game is affecting various assets, including cryptocurrencies like Bitcoin. Reduced trading activity due to market holidays in Asia is also playing a role in the calm market conditions.
The Market Situation
Bitcoin (BTC) began the trading week without much change, staying just above $94,000. This stillness is mostly because traders are waiting to hear updates from China about the trade deal talks with the United States.
Other major digital assets were also slightly down by 1.5%, trading below 2,700, showing the general cautious mood in the market. Experts note that while Bitcoin and other cryptocurrencies have recovered from recent price drops, they haven’t made big moves up yet. Some believe that current economic conditions in the U.S. might be making investors nervous about risky assets like crypto, even though Bitcoin has been acting less like traditional stocks recently.
Trading activity was low on Monday because major markets in places like Hong Kong, China, Japan, and Korea were closed for holidays. This means there were fewer buyers and sellers, leading to less price movement.
News about a possible improvement in U.S.-China trade relations was a big topic. China mentioned they were looking at a U.S. offer to restart talks, and President Trump suggested China was keen to make a deal. A spokesperson for the Commerce Ministry confirmed the same in a statement made last week on Friday.
China has noticed that senior US officials have repeatedly stated that they are willing to negotiate with China on tariffs. At the same time, the US has recently taken the initiative to convey information to China through relevant parties many times, hoping to talk with China. China is currently evaluating this.
Despite some market skepticism about a quick deal, the possibility of better trade relations did catch the market’s attention. The Chinese yuan got stronger against the U.S. dollar, and other currencies in the region also saw gains. The New Taiwan Dollar notably increased to its highest level in two years, surging by $1.4 billion (NT$42.9 billion) in foreign equity inflows, boosted by strong performance from Taiwan’s tech companies
Adding to Bitcoin’s stable price is the fact that it’s hitting tough spots to break through, according to recent analysis. Bitcoin is finding it hard to get past the $93,000 to $95,000 mark. This area is important because it’s where many short-term investors bought Bitcoin, and it also lines up with a key average price over the last 111 days. Bitcoin is currently trading at $94,606, down 1% in the last 24 hours.
Breaking above this price range is seen as crucial. If Bitcoin can’t stay above these levels, its price might fall back into a range it was in before, which could mean losses for some investors. However, if Bitcoin manages to push above the resistance around $95,000 to $98,000, there’s less pressure from sellers above $100,000, potentially opening the way for it to reach new, higher prices.
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