Bitcoin (BTC) is consolidating just below its all-time highs as renewed optimism on tariff negotiations leaves the cryptocurrency poised for a potential breakout

Bitcoin is still consolidating just below its all-time highs as renewed optimism on tariff negotiations leaves the cryptocurrency poised for a potential breakout, analysts say.

The world's largest cryptocurrency is trading at around $70,000, having hit a high of $71,700 last week. It has since pulled back slightly, but traders are keeping an eye on the $69,000 support level, which could be crucial for determining the next move.

Several analysts have pointed to the potential for a breakout if Bitcoin can clear the $72,000 resistance level. Once that level is breached, the next major target could be the $80,000 mark, which is the Fibonacci extension of the 2020 bull market.

"We're still in a bull market, no question about it," said one analyst. "But if Bitcoin starts to fall and break the key support levels, then we could see a reversal of the trend."

Bitcoin has been consolidating in a narrow range in recent weeks as traders await the next move. The cryptocurrency is also facing headwinds from the U.S. Federal Reserve, which is expected to continue raising interest rates this year.

However, traders are also optimistic about the prospects for a trade deal between the U.S. and China. The two economic superpowers have been engaged in a bitter trade war for several years, but recent reports suggest that they may be close to reaching an agreement.

"A trade deal would be a major positive for Bitcoin and other cryptocurrencies," said another analyst. "It would reduce uncertainty and boost risk appetite."

If Bitcoin can breakout of its current consolidation and clear the $72,000 resistance, it could be on track for a substantial rally in the coming months.

In other cryptocurrency news, Ethereum price slipped below $1,600 on Sunday despite the upcoming Shanghai upgrade, which is set to introduce the highly anticipated liquid staking derivatives.

The second-largest cryptocurrency had been trading above $1,600 for the past three weeks as anticipation for the upgrade grew. However, it pulled back slightly to trade around $1,588 by 09:03 ET (13:03 GMT).

Despite the setback, Ethereum is still up more than 150% year-to-date, outperforming Bitcoin's gains of 70%.

The Shanghai upgrade is expected to be completed on March 15, and it will introduce several new features to the Ethereum network, including the ability to withdraw staked Ether.

The upgrade is also expected to increase throughput and reduce transaction fees on the network.

"The Shanghai upgrade is a significant milestone for the Ethereum network," said Ben Kingsley, the head of research at crypto research firm Ben Kingsley Research.

"It will introduce several new features that will improve the usability and scalability of the network."

The upcoming upgrade has already led to the creation of liquid staking derivatives, which are designed to provide traders with exposure to the price of staked Ether without having to lock up their own tokens.

Several major crypto firms, including derivatives exchange Deribit and trading firm Jane Street, have already launched products that track the price of staked Ether.

These products are expected to be popular with traders who want to express bullish or bearish views on the price of Ether in the coming months.

"There is a lot of interest in liquid staking derivatives, and we expect to see more products launched in the coming weeks and months," said Kingsley.

"This is a new and innovative area of the crypto market, and it has the potential to revolutionize the way that traders interact with DeFi and Web3."

As the dust settles on an eventful weekend, traders are focused on the potential for Bitcoin to breakout of its current consolidation and reach new all-time highs.

Several analysts believe that if Bitcoin can clear the $72,000 resistance, it could be on track for a substantial rally to the $80,000 mark, which is the next major Fibonacci extension of the 2020 bull market.

"We’re still in a bull market, no question about it," said one analyst. "But if Bitcoin starts to fall and break the key support levels, then we could see a reversal of the trend."

Bitcoin has been consolidating in a narrow range in recent weeks as traders await the next move. The cryptocurrency is also facing headwinds from the U.S. Federal Reserve, which is expected to continue raising interest rates this year.

However, traders are also optimistic about the prospects for a trade deal between the U.S. and China. The two economic superpowers have been engaged in a bitter trade war for several years, but recent reports suggest that they may be close to reaching an agreement.

"A trade deal would be a major positive for Bitcoin and other cryptocurrencies," said another analyst. "It would reduce uncertainty and boost risk appetite."

If Bitcoin