Bitcoin price rally stalls near wedge top after tariff deal lifts price briefly above $105K
Bitcoin holds above $105K as US-China trade truce fuels rally.
Bitcoin price kicked off the week on a strong footing, spurred by news of a temporary tariff reduction deal between the U.S. and China.
The easing of trade tensions triggered a short-lived rally during the Asian session, propelling BTC above the $105,000 mark. However, the bullish momentum met resistance at the upper boundary of a rising wedge pattern and the price swiftly pulled back into the familiar $103,000–$104,000 range.
This pullback has not dented the broader bullish structure. Bitcoin just recorded its fifth consecutive weekly bullish close, ending last week with a 10% gain and a high near $104,800. The consolidation seen since the weekend, though tight, is forming a bullish wedge pattern supported by growing volume. That combination suggests an imminent breakout higher is likely.
Bitcoin momentum to depend on breakout before daily RSI exhaustion kicks in
On the technical front, the 4-hour RSI has eased from overbought levels and is now trending in bullish territory, indicating continued upward pressure in the near term. On the daily chart, however, RSI is hovering around 74 well into overbought territory. This points to limited upside before another pullback or pause, though it doesn’t rule out a push toward higher resistance levels first.
BTC price dynamics (Dec 2024 - May 2025). Source: TradingView
Traders are now closely watching the $109,300 level, Bitcoin’s all-time high reached in January. The current price is less than 5% away from this level. A decisive breakout above the wedge could drive a test of that resistance, but short-term momentum may fade as technical indicators cool off.
The trade deal news may provide temporary support, but price movement will likely hinge on whether bulls can maintain pressure and force a breakout before daily RSI exhaustion sets in.
Bitcoin broke above $100 000 and surpassed its February peak after four strong daily bullish closes. Price stayed 5 percent below record high as options positioning turned bearish.
