FameEX Hot Topics | Bitcoin Poised for $150K Rally as US and China Agree to Slash Tariffs

Bitcoin bulls celebrated a significant development in the ongoing US-China tariff negotiations, which has sent the cryptocurrency soaring above $105,700 for the first time in four months on May 12. This surge has fueled further optimism for a bullish continuation, with some analysts targeting a $150,000 price point.

The breakthrough came after US Treasury Secretary Scott Bessent and Chinese Vice President He Lifeng reached an agreement in Geneva to reduce tariffs that had weighed heavily on bilateral trade. Under the deal, the US will slash tariffs on Chinese goods from 145% to 30%, while China will lower duties on US imports from 125% to 10%. This agreement was seen as a major step in improving economic relations between the two countries.

The news triggered a broad-based rally in financial markets, with S&P 500 futures climbing 2.8% and the US dollar gaining 0.7%. Meanwhile, gold dropped by 2.3%, reflecting a shift away from safe-haven assets as investors moved towards riskier assets, including Bitcoin. Historically, such improvements in market sentiment and liquidity have proven to be favorable for Bitcoin rallies.

Bitcoin’s recent rally follows a classic breakout of a bull flag pattern on the weekly chart, which is often seen as a bullish continuation setup. The bull flag pattern formed after Bitcoin reached nearly $110,000 in January, with the price consolidating downward within a parallel channel. The breakout above the flag’s upper trendline in early May, accompanied by a slight volume increase, confirmed the bullish continuation.

With this breakout, analysts have projected an upside target for Bitcoin near $150,000, based on the height of the initial flagpole added to the breakout point. Furthermore, momentum indicators, including the relative strength index (RSI), are showing a positive outlook, with the weekly RSI rebounding above 65, indicating renewed buying pressure without reaching overbought levels above 70.

However, some caution is warranted as Bitcoin’s sentiment approaches euphoric levels. André Dragosch, European head of research at Bitwise, pointed out that the firm’s Cryptoasset Sentiment Index has reached its highest level since November 2024, a point that has often been followed by short-term corrections or sideways price action in the past.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.