As Bitcoin (BTC) rapidly approaches the $100,000 milestone, speculation is rife about a significant trade agreement between the U.S. and U.K. fueled by comments from President Donald Trump. This surge in Bitcoin’s value aligns with broader bullish trends in cryptocurrency and positive sentiment in traditional markets. Consequently, Asian stocks have risen, and futures for the S&P 500 have increased by 0.6%.
However, several key considerations could make the ascent to $100K challenging.
- Wall Street Journal Insights: The anticipated trade arrangement that Trump alluded to may merely represent a ‘framework for discussions regarding tariff adjustments,’ which could prolong the finalization of an actual deal. As the initial excitement subsides, BTC’s bullish momentum might weaken.
- Possible Resistance Point: The price level near $99,900 may create significant selling pressure, particularly from early investors looking to cash out.
- Coinbase Premium Indicator: This popular measure of demand among U.S. investors indicates a potential decline in bullish activity since late April, diverging negatively from current price trends.
- Relative Strength Index (RSI): Despite recent price peaks, a bearish divergence in the RSI suggests that buying momentum may be faltering.
Bitcoin Coinbase premium. (CryptoQuant)
BTC’s hourly chart. (Velo Data/TradingView)
What’s on the Horizon for Bitcoin?
In summary, while Bitcoin may be on the verge of a notable price increase, vigilant monitoring of market indicators will be essential to navigate potential challenges ahead.
