The China-U.S. trade relationship has made breakthrough progress, and Bitcoin is targeting a key resistance level of $117,000.

During talks held on October 26 in Malaysia, the negotiating representatives from China and the United States announced that they had reached a “very substantial framework protocol,” which significantly alleviated global trade tensions. Driven by this favourable information, the crypto market quickly rebounded, with Bitcoin (BTC) prices successfully breaking through $115,000 and stabilizing above $114,400 at the time of writing. The total market capitalization of global crypto assets subsequently rose by about 1.9%, reaching approximately $3.92 trillion. U.S. Treasury Secretary Scott Bessent stated that the protocol helps to prevent the previously threatened 100% tariffs and suspends China's restrictions on rare earth exports.

The Trade Framework Agreement Injects a Strong Boost into the Crypto Market

During the weekend, the negotiation representatives from China and the United States concluded a two-day meeting in Malaysia and announced a new trade framework agreement, which brought a crucial easing to the tense Sino-US trade relations. The market viewed this as a reduction in macro risks and quickly funneled funds into risk assets, driving the price of Bitcoin (BTC) significantly higher, successfully testing the resistance level above $115,000.

Favourable Information: Suspension of Tariff Threats and Rare Earth Export Restrictions

U.S. Treasury Secretary Scott Bessent announced that negotiators have reached a “very substantial framework” during the talks. The key points of the agreement are:

• Preventive Tariffs: Help to prevent the implementation of the 100% punitive tariffs previously threatened by the United States.
• Suspend export restrictions: Ensure China suspends restrictions on rare earth exports.

Chinese Vice Premier He Lifeng described the relationship between the two sides as “focusing on mutual benefit and win-win results,” and urged both sides to properly address each other's concerns to maintain the progress made in this year's talks.

The market responds positively: total market capitalization approaches 4 trillion USD.

The crypto market has responded positively to the announcement of this trade framework agreement.

• Total market capitalization soars: The global market capitalization of crypto assets has risen by about 1.9%, reaching approximately 3.92 trillion dollars, indicating a significant improvement in market sentiment.
• Risk assets rebound: Traders' concerns about the short-term impact of tariffs on risk assets have decreased, with major crypto assets including Bitcoin and Ethereum, as well as large market capitalization altcoins, expanding their weekly gains.

The joint statement from both parties pointed out that the two countries have reached a “basic consensus” in six trade areas, including measures under Section 301 regarding China's maritime and shipbuilding industry, the extension of the suspension of reciprocal tariffs, and cooperation related to fentanyl.

Bitcoin Price Technical Analysis: Aiming for $116,200

In the latest recovery momentum, the Bitcoin price has rebounded from an earlier low of 106,720 USD. Bulls successfully broke through the key resistance level of 112,000 USD and briefly surged to 115,400 USD.

Analysis of Key Resistance and Support Levels

Bitcoin (BTC) is currently consolidating above the 23.6% Fibonacci retracement level from the recent wave of rise, indicating a continuation of the bullish trend.

Macroeconomic Background: Trade Relations from Tension to Stability

It is worth noting that this protocol marks a significant shift in the wording of Sino-U.S. trade. Just at the beginning of October, U.S. Treasury Secretary Bessent stated that the Senate “supermajority” was prepared to grant President Donald Trump the power to impose tariffs of up to 500% on Chinese products related to oil purchases from Russia.

Both parties agree to continue close communication through the existing consultation mechanism to finalize the specific details of the framework agreement and to follow their respective domestic approval procedures, thereby maintaining the stability of bilateral relations.

Conclusion

The news of the trade framework agreement reached between China and the US quickly alleviated macro risks in the market and directly drove the price of Bitcoin (BTC) back to high levels, resulting in an increase in the total market capitalization of global crypto assets. This positive signal has brought short-term optimistic sentiment to the crypto market and demonstrates the significant impact of macroeconomic and geopolitical dynamics on digital asset prices. Investors should closely monitor the key resistance level of $115,500, as well as the subsequent details of the agreement, to guide their investment strategy for the next phase.

Disclaimer: This article is for news information only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make careful decisions.