- A positive U.S.-China trade deal has eased macroeconomic concerns, fueling optimism in risk assets like crypto.
- Technical analysis with pointers such as the MACD and RSI indicates that Bitcoin is gaining traction as a result of a positive macroeconomic situation.
- A decline in Bitcoin and USDT dominance is a tip for capital shift to altcoins, indicative of an impending second stage of the bull market.
Bitcoin and broader crypto markets are positioning for a possible rally following reports that the United States and China have reached a significant trade agreement. Treasury Secretary Scott Bissett revealed late Sunday that both the United States and China had concluded trading negotiations in Geneva last week with a positive result prior to further information to be released on Monday. Market analysts suggest that this development could ease macroeconomic uncertainty, which has weighed heavily on investor sentiment in recent months.
Trade Deal Sparks Optimism Across Markets
According to reports from American and Chinese authorities, the trade talks concluded on a positive note. U S negotiators spoke of an agreement to reduce the U S trade surplus, the Chinese counterparts confirmed consensus was achieved, and they exhibited a plan for a new economic dialogue mechanism. Analysts consider the news as a sign that risk assets, such as cryptocurrencies, may become more stable due investors’ reduction in geopolitics.
The crypto market has historically reacted to changes in the wider economy with sensitivity, particularly when the macroeconomic uncertainty is reduced. Previous trade tensions between the U.S. and China have contributed to declines across both traditional and digital asset markets. A resolution now could mark a reversal of that trend.
Bitcoin Technical Indicators Turn Bullish
Ahead of the trade deal announcement, Bitcoin has already begun climbing, reaching levels near $105,000. On the technical side, the Bitcoin weekly MACD indicator has flipped green—often viewed as a bullish signal. The RSI, meanwhile at 52.14 , remains neutral with a further room for upward movement.
Crypto analysts note that similar MACD patterns preceded major rallies in past market cycles, including the fourth quarter of 2024. Bitcoin’s current price action is also aligned with increasing global liquidity and a weakening U.S. dollar, both of which typically boost interest in crypto assets.
Altcoin Surge Signals Second Phase of Bull Cycle
Further signs signal a positive sentiment in the market. The declining dominance of both Bitcoin and USDT in the overall market suggests that capital is beginning to rotate into altcoins. This particular pattern is normally indicative of the start of the second phase of a bull cycle, as investors start looking for better returns and moving away from Bitcoin.
While Vice President JD Vance is set to be at the Bitcoin conference and public personalities such as Conor McGregor readily speak about digital assets, analysts warn an increased exposure would mean such a dominant market phase is drawing to close.
