Bitcoin (BTC) price sticks to $104,000 as US-China trade deal news rocks markets

Bitcoin (BTC) price hovered above $104,000 at the May 12 Wall Street open as markets reacted to news of a US-China trade deal.

BTC/USD sticks above $104,000 as traders eye Fib level

Data from Cointelegraph Markets Pro and TradingView showed the apex cryptocurrency consolidating after hitting its highest levels since late January.

The world’s largest cryptocurrency adopted the middle ground between major assets on the day as gold dropped sharply to $3,208 per ounce, nearing month-to-date lows.

The U.S. and China agreed to slash reciprocal trade tariffs, announced on Thursday, May 11, ultimately causing the S&P 500 and Nasdaq Composite Index to gain around 3%.

U.S. dollar strength also benefited as a result, with the dollar index (DXY) hitting one-month highs.

“The last time U.S. tariffs on China were this high, the S&P 500 was ~200 points lower, 4 Fed rate cuts were expected in 2025, and Wall Street was calling for a recession,” trading resource The Kobeissi Letter wrote in part of ongoing analysis on X.

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BTC price action appeared to be forming potential targets in the form of nearby order book liquidity, which now included $102,000, according to CoinGlass data.

Popular trader Daan Crypto Trades pointed out the build-up in bids around the $103,000 mark after the Wall Street open.

"BTC Swept most nearby liquidity above after chopping around the $103K-$105K area for a few days," he wrote in part of an update on X.

CoinGlass order book heatmap for BTC

As WTI crude oil price also rose to a 15-month high, risk appetite was in no short supply despite the build-up to a May 12 meeting of the U.S. Federal Reserve.

Classic bull market signal flashes

Continuing, fellow trader CrypNuevo was among those doubling down on a longer-term bull thesis for BTC price action.

BTC/USD, he noted, had successfully retested the 50-week exponential moving average (EMA).

Currently at $80,300, the 50-week EMA has functioned as a springboard for new all-time highs in recent years.

"We got the 1W50EMA retest and, consequently, the next leg up," CrypNuevo explained in an X thread on May 11.

Earlier, Cointelegraph reported on a classic bull market breakout signal on weekly timeframes in the form of a cross on the moving average convergence/divergence (MACD) indicator.