Bitcoin (BTC) is Trading Near $104,000 USD, Marking Its Highest Level in Four Months

Bitcoin (BTC) is trading near $104,000 USD on Monday, marking its highest level in four months. This rally follows a significant de-escalation in trade

Bitcoin (BTC) rallied to four-month highs near $104,000 on Monday, extending recent gains amid reports that the U.S. and China will slash tariffs.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in Geneva on Saturday to discuss the de-escalation of trade tensions.

According to the agreement, the two nations will reduce tariffs in a "major move" to improve bilateral ties.

This development triggered a broad-based market rally, with S&P 500 futures surging 2.8% and the U.S. dollar rising 0.7%. Conversely, gold slid 2.3%.

Technical analysis indicates that BTC is now testing the breakout point of a “bull flag” pattern on the weekly chart—a bullish continuation setup that suggests a potential rise to $150,000.

This pattern formed after BTC hit a high of $110,000 in January, followed by a period of consolidation as the price moved lower and formed a flag.

The breakout above the flag’s upper trendline, accompanied by increased volume from the previous week, reinforces the bullish outlook.

Momentum indicators, such as the Relative Strength Index (RSI), support this view, with the weekly RSI rebounding above 65.

This indicates renewed buying pressure without yet reaching overbought levels, which could limit any immediate price declines.

However, some analysts express concern over short-term over-heating in the broader crypto market.

André Dragosch, European Head of Research at Bitwise, points out that their Cryptoasset Sentiment Index has reached its highest level since November 2024.

Dragosch adds that this extreme optimism usually aligns with local market tops.

This suggests that the market's optimism may be getting ahead of itself, potentially setting the stage for a near-term pullback despite strong long-term prospects for Bitcoin.

In other developments, Ether (ETH) price today is up 2.2%, Solana (SOL) rose about 1%, and XRP increased by 2.2%.

The broader market also responded positively to the tariff news, with S&P 500 futures climbing 2.7%.