Bitcoin price breaks through $111,200! Trump: The China-U.S. agreement will be reached soon.

The price of Bitcoin rebounded strongly after a significant consensus was reached at the Xi-Trump meeting, breaking through from $108,850 to $111,200, with a 24-hour increase of about 2.01%. U.S. President Donald Trump stated that the U.S. could “quickly” sign a trade agreement with China after a highly publicized meeting with Chinese leaders, and tariffs on China would be reduced from 57% to 47%, with all rare earth issues resolved.

Trump-Xi meeting catalyzes Bitcoin price pump 2.3%

After the Federal Reserve lowered interest rates to 4.00%, the price of Bitcoin was hovering around 108,850 USD. However, with positive news emerging from the Trump-Xi meeting, the price of Bitcoin strongly rebounded, breaking through 111,200 USD. U.S. President Donald Trump stated that the U.S. could “quickly” sign a trade agreement with China after a 1 hour and 40 minutes meeting with Chinese leaders in South Korea.

Trump described the Chinese leader as “a great leader of a great country” in his opening remarks and added that he believes the two will “maintain a good relationship for a long time.” After the meeting, Trump rated the talks a 12 out of 10, calling it “a tremendous success.” The two sides reached multiple consensuses, agreeing to reduce tariffs on China from 57% to 47%, and all rare earth issues have been resolved, with rare earth trade no longer being hindered.

The price of Bitcoin reacted quickly and strongly to these positive news. From a technical perspective, after Bitcoin successfully held the key support level of $108,900, buying pressure significantly increased. Breaking through the resistance level of $110,700 confirmed the upward momentum, paving the way for further increases to $111,300.

The expected achievement of the China-U.S. trade agreement has eliminated a major uncertainty in the global economy. The significant reduction of tariffs from 57% to 47% will greatly improve the global trade environment and boost the sentiment for risk assets. The removal of trade barriers on rare earths addresses the security concerns of critical mineral supply chains, which is a significant benefit for both the technology and manufacturing industries.

Earlier today, the Chinese stock market hit its highest point in a decade, with the benchmark Shanghai Composite Index reaching a high of 4025.39 points. Global markets have generally risen this week as U.S. and Chinese officials attempt to ease trade tensions. This global market optimism has spilled over into the cryptocurrency market, driving Bitcoin prices to surge.

Germany Lists Bitcoin as National Asset: European Competition Heats Up

The largest opposition party in Germany, the Alternative for Germany (AfD), has proposed recognizing Bitcoin as a national strategic asset. The party urges policymakers to distinguish Bitcoin from other cryptocurrencies within the framework of the EU's Markets in Crypto-Assets Regulation (MiCA). The motion argues that excessive regulation could stifle innovation and weaken Germany's position in the digital finance sector.

The motion calls for maintaining the VAT exemption, protecting citizens' right to asset self-protection, and retaining a 12-month tax exemption period for Bitcoin earnings—this provision currently benefits long-term holders. A member of the Alternative for Germany (AfD) party also suggested that Germany consider including Bitcoin in its national reserves, similar to how central banks hold gold.

This proposal echoes the recent debates in France. Eric Ciotti, chairman of the French Republican Right Alliance (UDR), outlined an ambitious plan for France to accumulate up to 420,000 Bitcoins over the next 7 to 8 years, which would account for about 2% of Bitcoin's fixed supply. French lawmakers are pushing for more cryptocurrency-friendly policies to attract investment and strengthen Europe's blockchain industry.

Investors interpreted this move as a sign of increasing acceptance of Bitcoin in the European political arena. The news boosted Bitcoin prices, with traders betting that if Berlin supports this motion, broader institutional recognition will follow. As the two largest economies in Europe, Germany and France's recognition of Bitcoin will set an example for other EU member states and could trigger a Bitcoin reserve competition across Europe.

This kind of national-level Bitcoin procurement demand will provide long-term structural support for Bitcoin prices. If France really purchases 420,000 Bitcoins in 7-8 years, even if using a dollar-cost averaging method to spread the purchases, it will still require buying about 50,000 to 60,000 Bitcoins each year. This sustained buying pressure will significantly impact the market supply and demand balance.

Technical Breakthrough: RSI Oversold Rebound Occurs as Expected

The price of Bitcoin broke through from $108,850 to $111,200, perfectly validating the predictions of technical analysis. Previously, Bitcoin price predictions were bearish, with BTC hovering around $108,850, slightly above the key support level of $108,900, which coincides with the 23.6% Fibonacci retracement level. In recent weeks, this price level has been a reliable demand zone.

The Relative Strength Index (RSI) was previously close to 31, indicating that the market was in an oversold state. An oversold condition is usually a precursor to a technical rebound, and this rebound occurred as expected. When the RSI is below 30, it suggests that the market may be overselling, and there is upward momentum for price correction. The price of Bitcoin rebounded from the oversold area to $111,300, and the RSI also rose to a healthy level.

Several longer lower shadows appear on the 4-hour chart, indicating that buying on dips is active, even as the 50-day moving average flattens. These lower shadows are evidence of bullish defense; whenever the price approaches the support level of $108,900, a large influx of buying occurs, preventing further price declines.

The Bitcoin price has broken through $110,700, confirming the rebound momentum. If the daily closing price is above $110,700, it may trigger a rebound, with target price levels of $112,200 to $114,950. Currently, Bitcoin has already surpassed $111,200 and is moving towards the next target.

Key technical levels after Bitcoin price breakthrough:

Breakthrough Price: 111,200 USD (Achieved)

Next target: $112,200 (short-term target)

Medium-term target: $114,950 (upper boundary of the rising channel)

Key Support: $110,700 (new support level)

RSI Status: Rebounded from 31 to a healthy zone

Trading Strategy: Hold 110,700 USD, target 114,950 USD

If it breaks below 108,900 USD, it may drop to between 106,100 USD and 103,500 USD. However, under the dual support of the positive news from the Trump-Xi meeting and the proposal of national assets in Germany, this downside risk is significantly reduced. Traders tend to go long above 109,000 USD, targeting a price of 114,950 USD, as the oversold momentum suggests a possible rebound in November.

Dual Benefits of Fed Rate Cuts and End of QT

The Federal Reserve lowered interest rates from 4.25% to 4.00%. Although Powell hinted that there may not be another rate cut in December, he confirmed that the balance sheet reduction plan (QT) will end soon. The end of QT means the tightening of liquidity will stop, which will provide a more favorable macro environment for Bitcoin prices.

With the trade agreement framework reached at the Trump-Xi meeting, global economic uncertainty has significantly decreased. The price of Bitcoin broke through from $108,850 to $111,300, which is a direct response from the market to these positive news. TeraWulf is transforming with AI financing of $500 million, and Binance is collaborating with Bubblemaps to enhance transparency. These industry developments also add long-term value to the Bitcoin ecosystem.