Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

After an initial burst of momentum off the back of the U.S.–China trade announcement, Bitcoin quickly reversed, shedding its early gains and dipping below Sunday's low. The sharp rejection from $105,900 only 30 minutes after the news broke has left many traders questioning whether this latest leg in Bitcoin's rally is over — or simply pausing before a potential move to all-time highs.

Deal or Delay? Market Doesn't Buy It (Yet)

When the U.S. and China jointly announced a "pause" in tariff escalations — including a mutual rollback of tariffs by 115% while retaining a 10% base rate — risk assets initially surged. Bitcoin followed suit with a fast move upward.

Don't Miss:

Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – unlock  the power of alternative investments including a Crypto IRA within your retirement account.

But that enthusiasm didn't last long. As details emerged showing this was more of a temporary truce than a finalized agreement, Bitcoin lost its footing. Traders were quick to price in the lack of clarity.

Many traders believe the 90-day pause failed to address deeper structural issues in the U.S.–China relationship, which may explain the market’s muted response.

Technicals: Overbought Conditions and Key Levels

Despite the rejection from the $105,900 spike high, Bitcoin remains in a broader uptrend across the higher timeframes. As of writing, BTC trades at $102,456, still within a bullish structure on both the 4-hour and daily charts.

Here's a snapshot of key technical levels:

Weekly resistance: $104,460 (recent rejection level) Swing high: $105,900 (post-news spike) Support to watch: $99,595 (50% retracement from the recent move) Major support: $93,327 (daily swing low) Next upside target: All-time highs (~$110,000+)

Trending: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying tradeon Coinbase.

The short-term rejection can also be explained by technical exhaustion. Bitcoin entered an "overbought" zone on multiple indicators, making the rejection at a known resistance level — $104,460 — expected by many seasoned traders.

"This pullback is healthy. The market needed to cool off after a 40% run," one trader noted. "As long as we stay above $99,000–$100,000, bulls are still in control."

Story Continues

Coinbase in the S&P 500: A Fundamental Milestone

While price action might be stalling, fundamentals continue to provide bullish fuel. One major development: Coinbase is set to become the first crypto company to be listed on the S&P 500, with the official inclusion scheduled for Monday.

This move is widely seen as a signal of increasing institutional acceptance, bridging the gap between traditional finance and crypto. It may not create an immediate price spike, but it certainly strengthens long-term investor confidence.

What to Watch Next

Price reclaim above $104,460: This would indicate bulls are regaining momentum, potentially setting up for another test of all-time highs.  Break below $99,000: Could lead to deeper pullbacks, especially if daily structure begins to turn bearish.  Clarity on trade developments: If a finalized U.S.–China deal emerges, all risk assets, including Bitcoin, may benefit from renewed confidence.

For now, the higher timeframes remain intact, and pullbacks like these are often necessary for continued healthy growth. Bulls still have control — but the next few sessions will be critical in determining whether Bitcoin has enough in the tank for another leg higher.

Read Next:

A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum.

Image: Shutterstock

Send To MSN:  0

This article "Crypto Is Here to Stay," Says Coinbase CEO Brian Armstrong as Exchange Joins S&P 500 While Bitcoin Pulls Back From $105K originally appeared on Benzinga.com

View Comments