Haciyev Reşit 
Global markets have once again turned their attention to U.S.–China trade relations. The Chinese government’s decision to suspend its 24% additional tariff on U.S. goods for one year has created cautious optimism across markets. The move is seen as a sign of easing global trade tensions and has sparked expectations of a partial recovery in risk assets.
Amid these positive signals, Bitcoin is trading near a critical technical level. Approaching its 50-week simple moving average (SMA) — a trend line that has been tested multiple times over the past three years BTC is currently hovering around $102,900. Analysts describe this level as a “make-or-break zone” for Bitcoin.
Bitcoin at a Critical Technical Support: The 50-Week SMA Could Be Decisive
Bitcoin is once again testing the 50-week simple moving average — a level from which it has initiated strong rallies three times since 2023. This area is widely considered one of the most significant trend supports by both technical analysts and institutional investors.
If Bitcoin manages to hold this level, a rebound toward the $105,000–$110,000 range could occur. However, if it breaks below this support, there’s a risk of a deeper decline toward $98,000.
Crypto analyst Marcus Thielen commented:
“Bitcoin is trading along the most critical line of its long-term uptrend. A breakdown below the 50-week average would technically confirm renewed weakness.”
U.S.–China Trade Tensions Ease: Global Risk Appetite May Increase
According to reports, China’s Ministry of Finance will suspend retaliatory tariffs on key U.S. agricultural products — including soybeans, corn, wheat, sorghum, and chicken starting Monday. The 24% additional tariff will be paused for one year, while a 10% base tariff will remain in place.
This decision follows last week’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping, during which both leaders agreed to ease trade tensions and reduce tariffs related to fentanyl-linked products. Economists believe the move could reduce global uncertainty and increase risk appetite across both financial and crypto markets. However, for optimism to be sustainable, long-term stability in U.S.–China trade relations will be crucial.
Mixed Market Signals: Sequans Sale Puts Pressure on Bitcoin
Despite the easing trade tensions, other developments are weighing on Bitcoin. French technology firm Sequans Communications announced that it sold its Bitcoin holdings to retire half of its convertible debt.
This move could weaken the current “Bitcoin treasury asset” narrative, as it contrasts with the trend of institutional accumulation seen in recent months. Experts warn that if corporate selling pressure continues, Bitcoin’s recovery potential could remain limited. Nonetheless, improving macroeconomic conditions and signs of stabilization in U.S.–China relations could help balance BTC’s price action in the near term.
Analysis
China’s suspension of the 24% tariff on U.S. goods has eased global market tensions and partially restored investor confidence. This development may support short-term buying interest in risk assets.
Meanwhile, Bitcoin is trading around its 50-week moving average, a historically significant level where major uptrends have begun. If BTC holds this support, it could regain upward momentum. However, a breakdown below this level could intensify short-term selling pressure, keeping markets volatile in the near future.
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