Crypto Market Rallies: US-China Relations and Short Squeeze Propel Gains

The crypto market sees a 6.7% rise, driven by easing US-China trade tensions, a massive short squeeze, and strong technical indicators. Bitcoin reaches $94,000, and total market cap stands at $2.94 trillion. However, challenges remain to achieve further gains.

Today, there’s a buzz in the crypto world as markets surge. A mix of factors is pushing the numbers up—the total crypto market cap is soaring roughly 6.7% over the last 24 hours to approximately $2.94 trillion. Bitcoin and Ether are the heavyweights here, climbing about 6.4% and 13%, respectively. Coincidence? Probably not.

A primary factor fueling this enthusiasm is the easing tensions between the US and China concerning trade wars. Recent comments from US Treasury Secretary Scott Bessent indicated a potential thaw in relations, describing the impasse on tariffs as ‘unsustainable.’ Just when optimism seemed to bubble up, President Trump echoed these sentiments, suggesting tariffs could soon be slashed from their staggering 145%. This back-and-forth has brought a dose of confidence back into the markets.

But that’s not all. The crypto scene witnessed a massive wave of short liquidations—over $624 million vanished in just 24 hours. Among those, a whopping $545 million linked to short positions. CoinGlass couldn’t contain its excitement, exclaiming: ‘Short squeeze!’ They compared today’s chaos to a similar spike on November 6, when a staggering $426 million was liquidated, adding a significant boost to market caps back then.

Technical signals are also looking favorable for cryptocurrencies right now. The total market capitalization has recently broken out of a troubling multimonth downtrend—a pattern known as a falling wedge. It’s a strong bullish signal. After retesting the upper resistance line of around $2.6 trillion and pushing past a vital 50-day moving average, many analysts are keeping a close eye on a hopeful target: a leap to $3.12 trillion, representing that juicy 7.5% uptick.

Despite this bullish momentum, it’s not all smooth sailing. To hit those targets, bulls will need to clamber over some substantial hurdles first, particularly the strong barriers posed by the 100-day and 200-day moving averages hovering around $2.93 trillion and $2.94 trillion. The relative strength index, which dipped as low as 30 earlier this month, has now surged to 65, suggesting that positive momentum continues to build in the market.

Today’s crypto market rally appears to be riding high on optimism regarding US-China trade relations and a significant short squeeze, with investors reacting positively across the board. With technical indicators also showing promising signs, this might not just be a flash in the pan. But the road ahead is not entirely clear, as some significant resistances lie in wait. As always, exercise caution and do your homework before making any investment decisions.

Original Source: www.tradingview.com