Bitcoin's price surged above $105,000 today, driven by positive developments in US-China trade negotiations. The cryptocurrency reached a high of $105,705 amid increased trading activity in the financial markets.

Despite a slight pullback, there is strong bullish momentum in both the spot and derivatives markets for Bitcoin, indicating the potential for a sustained price rally.

The surge in Bitcoin's price was attributed to the announcement of a 90-day tariff relief deal between the US and China. This news led to optimism in global markets as tariffs on Chinese imports by the US and vice versa were set to be lowered significantly.

While Bitcoin's price has dipped to $104,397, indicators suggest a bullish sentiment in the markets. The Long/Short Ratio in the futures market favors long positions, indicating traders' optimism about a potential price increase in the short term.

Additionally, the options market has seen a rise in demand for call contracts, signaling a bullish outlook for Bitcoin's price movement.

However, Bitcoin's price surge faces a test as the Chaikin Money Flow indicator on the daily chart shows a bearish divergence. This suggests a decrease in buying pressure, which could potentially lead to a price drop to $101,070 if the trend continues.