Bitcoin's price climbed back above the $110,000 level on Monday, as investors overlooked a recent massive liquidation in the crypto market and escalating U.S.-China trade disputes. The cryptocurrency received support from technical indicators amid softened rhetoric from President Donald Trump on trade issues. Trading at $110,900, it has gained 18% year-to-date but remains below its recent record high.
Bitcoin (BTCUSD) surged past the key $110,000 threshold on Monday, recovering from a drop below $104,000 the previous Friday. This rebound followed a $19 billion wipeout of leveraged crypto positions, triggered by President Donald Trump's imposition of steep tariffs on all Chinese imports just over a week earlier. The cryptocurrency's uptick coincided with Trump softening his stance, stating he is "not looking to destroy China," as reported by Axios, and listing top demands ahead of resumed trade talks, per Bloomberg.
The price action found buying interest near a confluence of support, including the lower trendline of a three-month trading range and the rising 200-day moving average. However, the relative strength index remains below its neutral threshold, indicating lackluster momentum, with investors urged to watch trading volume for signs of sustained recovery.
Key support levels to monitor include $100,000, aligned with a trendline from November's high, and $93,000, near historical trading activity from November to April. On the upside, resistance sits at $117,000, just above the 50-day moving average and near September's peak, with $123,000 marking the top of the current range, coinciding with July, August, and October highs.
Bitcoin has risen 18% since the year's start, though it is down substantially from its $126,000 record set two weeks ago. Future sentiment may hinge on interest rates, potential crypto-friendly legislation, and U.S.-China trade developments.