Bitcoin back to $120k after Trump's trade deals. Is it worth buying?

The cost of bitcoin during trading on July 28 approached the mark of $120 thousand on the news of a trade deal between the U.S. and the EU and the expected extension of the tariff truce with China. This triggered growth in the markets of risky assets, including cryptocurrency. Traders looking to join the uptrend were faced with the dilemma of whether to enter the market now or wait for a pullback. Markus Thielen, founder of 10x Research, suggested two entry points for those looking to invest in bitcoin.

Bitcoin, which traded mostly between $114k and $119k last week, has climbed to $119.8k on the morning of July 28. While the largest cryptocurrency failed to make a headway at the $120k mark, it held around $119k. This has encouraged cryptocurrency market participants, who now expect the rise to continue, writes Cointelegraph.

The main driver of growth for risky assets, including bitcoin, has been positive shifts in trade policy, states the publication. The White House concluded a trade agreement with the EU, which U.S. President Donald Trump called "the biggest trade deal ever made". In addition, Hong Kong's South China Morning Post reported, citing "sources on both sides," that Beijing and Washington will extend the delay in imposing duties for another 90 days.

Traders' predictions about the further movement of bitcoin price are divided, but in general remain optimistic. Trader Crypto Tony claimed that if bitcoin can stay above $117,000, a new all-time high can be expected "very soon." A Rekt Capital trader predicted that if bitcoin consolidates above $119.2k this week, it could trigger a rise. At the same time, an analysis of exchange orderbooks - lists of orders to buy and sell bitcoin - shows that bitcoin's price could fall to $113k, noted Cointelegraph. 

10x Research founder Markus Thielen advises investors targeting the uptrend to wait for a more favorable entry point, wrote Coindesk. That point is $111.673k, a level that bitcoin recently broke, wrote Thielen to clients on July 28. If there is no pullback, a good entry point could be above $120k - but you need to be ready to close your position quickly if the price drops, he added.

This year July turned out to be successful for bitcoin - it rose in value by 11.3%. However, its performance this month is not much higher than historical averages: according to CoinGlass, since 2013, the average growth of the largest cryptocurrency in July was 7.85% and the median growth was 9.6%, notes Cointelegraph. Even in 2022, which has been a bear market year for bitcoin, July yielded investors nearly 17%. Meanwhile, its average return in August is historically much more modest and is just 1.75%.

This article was AI-translated and verified by a human editor