Bitcoin (BTC) price drops below $102,400 as Wall Street soars amid easing US-China tensions

While Wall Street soars amid easing tensions between Washington and Beijing, bitcoin itself drops below $102,400

While Wall Street soared amid easing tensions between Washington and Beijing, bitcoin dropped below $102,400 on May 12. An unexpected decline, contrasting with the prevailing optimism and institutional momentum of recent weeks. Why did BTC not benefit from the market euphoria? Just hours before the release of the US CPI, investors wonder: a simple profit-taking, or a warning signal of deeper macroeconomic stress?

A technical correction driven by the macroeconomic context

On May 12, bitcoin experienced a sudden drop, sliding from an intraday peak of $105,819 to a low of $102,388, without a clearly bearish macroeconomic catalyst. However, this decrease takes place in an overall favorable context.

Trade negotiations between Washington and Beijing progressed in Geneva, which sparked enthusiasm in the market. Notably, US President Donald Trump himself praised the progress on his Truth Social platform, alluding to a promising agreement.

At market open, the Dow Jones soared by 1,000 points, but bitcoin did not follow suit. Some traders believe the market has already priced in the effects of Trump’s deal with China, as bitcoin failed to maintain its gains above $104,000 despite such major news.

Beyond this macroeconomic interpretation, market data reveals profit-taking and risk reduction by some investors. This caution could be linked to the anticipation of the CPI (Consumer Price Index) figures, scheduled for release on May 13. Technical and behavioral indicators support this hypothesis:

* The Relative Strength Index (RSI) on the 4-hour chart crossed below the overbought zone, suggesting a potential loss of bullish steam.

* The Accumulation, Volume Point (AVP) indicator also shows a slight decrease, indicating reduced buying pressure.

* Finally, the absence of strong follow-through after the attempt to break through the $104,000 resistance level, despite favorable news, points toward technical resistance.

These signals confirm that BTC’s retreat is essentially technical and opportunistic, rather than a reaction to a deteriorated fundamental factor.