US President Donald Trump has extended the pause on tariffs against Chinese goods by 90 days, postponing the deadline initially set for 12 August. The announcement triggered a sharp rise in Bitcoin's price, which climbed to nearly $119,800 before returning to around $119,000.
Market watchers remain cautious, debating whether the price surge represents a lasting rally or a brief 'Dead Cat Bounce.' A CME futures gap below $119,000 may need to be filled before Bitcoin can sustain an uptrend.
The crypto market also awaits key US inflation data, with consumer and producer price figures expected in mid-August. These statistics could influence the Federal Reserve's decisions, with a rate cut forecast for September growing more likely.
Crypto analyst Altcoin Sherpa outlined two possible paths for Bitcoin's near-term movement. One scenario expects a gradual pullback to form a stable base, while the other anticipates a quick liquidity test near $120,000 influenced by treasury and economic factors.
