Bitcoin’s recent rally gained momentum amid signs of easing U.S.-China trade tensions, with the cryptocurrency surging past $119,000 after trading near two-week lows of $114,500. The price rebound, fueled by renewed bullish sentiment and strategic institutional activity, has sparked debate among analysts about whether the uptrend can hold. The U.S. and China agreed to temporarily delay new tariffs, a move that eased broader market pressures and potentially supported risk-on appetite. This development coincided with Bitcoin’s attempt to reclaim key technical levels, including the 10-day simple moving average and the $119,500 resistance threshold [1].

Technical analysts remain divided on the near-term outlook. Some argue that a decisive break above $119,500 could trigger further gains, with crypto investor Ted Pillows forecasting a potential breakout in the coming month [1]. Others caution that consolidation below this level might lead to a retest of support around $114,500–$113,600, a zone marked by prior liquidation clusters and order-book liquidity [1]. CoinGlass data highlights that the “max pain” point for short positions lies near $119,650, suggesting that a push toward all-time highs could trigger over $1.1 billion in short liquidations [1]. Meanwhile, volatility indicators, such as gamma exposure analysis from TheKingfisher, warn of heightened short-term swings as dealers hedge short gamma positions [1].

Institutional demand for Bitcoin continued to drive the market narrative. Japanese investment firm Metaplanet added 780 BTC to its holdings at an average price of $118,145, bringing its total stash to 17,132 BTC, valued at approximately $1.7 billion [1]. The purchase, made at a cost of $92 million, positions Metaplanet as the seventh-largest corporate Bitcoin holder globally, trailing only entities like Trump Media & Technology Group and Galaxy Digital Holdings [1]. The company’s aggressive BTC accumulation has already delivered a 246% year-to-date gain in its stock price, propelling it to Japan’s top-performing equity [1]. Metaplanet’s CEO emphasized a “Japan-native” strategy, leveraging regulatory advantages and tax-free savings accounts to democratize Bitcoin exposure for local investors [1].

The interplay between geopolitical developments and institutional moves underscores Bitcoin’s evolving role as a macro-driven asset. While the U.S.-China tariff pause may have alleviated immediate market stress, its long-term impact on Bitcoin remains uncertain. Analysts like Rekt Capital noted that closing above recent range lows could signal a reentry into a bullish trading zone, though risks persist if prices retreat into lower support levels [1]. For now, the market’s focus remains on whether Bitcoin can sustain momentum above $119,000 or face renewed bearish tests as short-term volatility intensifies.

Source: [1] [Bitcoin Rally Builds Amid US-China Tariff Pause] [https://coinpaper.com/10215/bitcoin-rally-builds-amid-us-china-tariff-pause]