The price of Bitcoin has significantly surged, after the crypto asset climbed 3.6% on Monday to cross the $115,000 mark, buoyed by renewed investor confidence and improving global risk appetite.
The rally came as signs emerged that trade tensions between the United States and China may be easing, sparking optimism across both equity and crypto markets. Recall that Trump had earlier stated plans to impose a 100% tariff on all Chinese imports, reigniting fears of a renewed trade war between the world’s two largest economies.
This pushed Bitcoin’s price below key technical levels, including the $110,000 and $108,500 support zones, triggering automated sell orders and accelerating the downturn, while renewed interest surged among traders exploring how to buy Bitcoin during the dip.
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In a recent development, over the weekend, senior U.S. and Chinese economic officials reportedly outlined a framework for Presidents Donald Trump and Xi Jinping to review later this week in South Korea. The proposed deal would pause steeper U.S. tariffs and delay China’s planned rare-earth export controls, a development that has helped calm investor nerves following months of escalating trade risks. Trump has expressed optimism about reaching an agreement soon, further lifting market sentiment.
Technically, Bitcoin ended the week above the bull market support band, a key indicator that often distinguishes bullish expansions from corrective phases. With BTC now trading around $115,239 at the time of writing this report, analysts suggest the market can confidently declare that the cryptocurrency has exited its downward trend. The weekly chart, according to traders, reflects Bitcoin’s resilience and the restoration of its long-term bullish structure.
The improved outlook was also reflected in sentiment indicators. The Crypto Fear & Greed Index rose to a neutral score of 51 out of 100 on Sunday, exiting the “fear” zone for the first time in more than two weeks. This marks an 11-point increase from Saturday’s reading of 40 and a gain of over 20 points since the previous week, signaling a significant shift toward renewed confidence in the crypto market.
On the technical front, bulls pushed the price above $113,500 and the 100-hourly simple moving average before Bitcoin spiked past $115,000. It is now consolidating gains above the 23.6% Fibonacci retracement level of the recent wave from $106,718 to $115,400. However, analysts caution that if Bitcoin fails to break the $115,500 resistance zone, it could face a pullback. Key support levels lie around $114,000, followed by $113,500 and $111,000. A further decline could send the price toward $110,500, with the main support anchored at $108,500.
Beyond technicals, macroeconomic factors are also in focus. Investors are closely monitoring the Federal Reserve’s upcoming meeting, where markets widely expect a second rate cut of the year. According to the CME FedWatch Tool, the probability of a 25-basis-point cut stands at 97.3%. The Fed’s decision, alongside Chair Jerome Powell’s Wednesday press conference, will likely shape market expectations for the remainder of the year.
With the recent government shutdown restricting access to updated economic data, analysts expect Powell to address how the Fed plans to balance inflation concerns with a cooling job market. Should the Fed signal confidence in continued monetary easing, particularly if quantitative tightening is nearing its end, it could inject liquidity back into financial markets, fueling further rallies in both equities and cryptocurrencies.
Outlook
With a potentially dovish Fed, easing trade tensions, and renewed market optimism, Bitcoin’s recent breakout appears to be supported by a strong mix of technical and macroeconomic tailwinds.
As the week unfolds, all eyes remain on the Trump–Xi meeting and Powell’s remarks, two key events that could determine whether Bitcoin’s momentum continues or pauses for consolidation.