Key takeaways<\/strong>:<\/p>\n Bitcoin broke above $105,700 after the US and China agreed to slash tariffs.<\/p>\n<\/li>\n A confirmed bull flag breakout on the weekly chart projects $150,000.<\/p>\n<\/li>\n Bitwise\u2019s sentiment index warns of potential short-term overheating.<\/p>\n<\/li>\n<\/ul>\n Bitcoin (BTC<\/a>) bulls cheered a major development in the ongoing US-China tariff talks, with the cryptocurrency climbing over the $105,700 mark on May 12 for the first time in four months, further confirming a bullish continuation setup with a $150,000 price target.<\/p>\n The catalyst behind Bitcoin\u2019s breakout appears to be de-escalating trade tensions between the US and China<\/a>. <\/p>\n Over the weekend, US Treasury Secretary Scott Bessent<\/a> and Chinese Vice President He Lifeng struck a deal in Geneva to reduce tariffs that had crippled bilateral trade for months.<\/p>\n Under the deal, the US will lower tariffs on Chinese goods from 145% to 30%, while China will reduce its duties on US imports from 125% to 10%. <\/p>\n Related: <\/strong><\/em>US-China trade deal could shed light on Bitcoin\u2019s use case: Trader<\/strong><\/em><\/a><\/p>\n The agreement triggered a broad-based market rally, with S&P 500 futures rising 2.8% and the US dollar gaining 0.7%. In contrast, gold dropped 2.3%, signaling a shift away from safe-haven assets.<\/p>\n Bitcoin, often seen as a high-beta risk asset<\/a>, had suffered under the weight of the trade war, with increased investor caution suppressing crypto inflows. The truce now signals improved liquidity and risk appetite, conditions historically favorable for BTC rallies.<\/p>\n The current Bitcoin rally follows the textbook breakout of a bull flag pattern<\/a> on the weekly chart, a bullish continuation setup formed when the price consolidates downward in a parallel channel after a sharp upward move.<\/p>\n In Bitcoin\u2019s case, the flag began forming after BTC peaked at nearly $110,000 in January. The consolidation persisted for months until early May, when the price broke above the flag\u2019s upper trendline with a slight volume increase.<\/p>\n This breakout confirms bullish continuation, with the pattern\u2019s projected upside target now sitting near $150,000, measured after adding the height of the initial flagpole to the breakout point.<\/p>\n Momentum indicators, including the relative strength index (RSI)<\/a>, are also supportive, with weekly RSI rebounding above 65, reflecting renewed buying pressure without entering overbought territory above 70.<\/p>\n Some analysts are urging caution as Bitcoin\u2019s sentiment is becoming euphoric. <\/p>\n\n
Bitcoins US-China trade truce fuels Bitcoin boom<\/h2>\n
Bitcoins Bull flag breakout points to $150K target<\/h2>\n
Bitcoins BTC may return to $100,000 first<\/h2>\n