Bitcoin (BTC) is facing a critical period this weekend due to significant trade negotiations between the US and China. These talks are complicated by distrust, conflicting narratives, and an unwillingness to compromise on tariffs.

Given the existing challenges in the crypto markets and reduced trading activity typically seen on weekends, any developments in these talks could lead to sharp price fluctuations by Monday.

The US Treasury Secretary has scheduled meetings with a Chinese official in Switzerland over the May 10-11 weekend. These talks are significant as they are the first official discussions since the US increased tariffs on Chinese imports to 145%. The outcome of these talks could further impact the already volatile situation.

While the US emphasizes the need for fair trade and expresses a desire to avoid a complete disconnect with China, the Chinese side remains wary, refuting US claims and reaffirming their stance to protect their interests.

The lack of concrete concessions from either side ahead of the meeting has raised concerns that the talks may end in a stalemate, adding to the uncertainty in the market. Bitcoin, closely tied to global risk sentiment, could experience increased volatility depending on the meeting's outcome.

As geopolitical tensions and economic factors intertwine, the uncertainty surrounding the trade talks, combined with other macroeconomic events, could sway market sentiment. The potential for an escalation in tensions or a positive breakthrough in negotiations could significantly influence Bitcoin's price direction.

Market participants are closely watching for any indications from the weekend talks, with Bitcoin likely to reflect the broader geopolitical landscape in its price movements. The outcome of the discussions will not only affect Bitcoin's performance based on technical analysis but also its reaction to global political dynamics.