Bitcoin (BTC) is quick closing on the $100,000 mark as U.S. President Donald Trump teased a serious commerce deal, with reviews suggesting it might be with the U.Ok.
The upswing in costs is according to the cryptocurrency’s broader bullish technical setup and buoyant threat sentiment in conventional markets. As of this writing, the Asian shares traded larger, with the futures tied to the S&P 500 up by 0.6%.
Nonetheless, a few elements counsel the $100,000 breakout will not be a easy trip.
WSJ pours chilly water over optimism
Firstly, as per the Wall Road Journal, the massive commerce deal that Trump teased on Fact Social might be a “framework of an announcement with tariff changes.”
In different phrases, the upcoming announcement might be a framework of discussions that might result in a commerce deal weeks or months from now. So, the bullish momentum in BTC may gradual as soon as the preliminary optimism fades.
Resistance at $99.9K
As mentioned earlier this week, the $99,900 may show a tricky nut to crack as a result of potential for elevated promoting stress from those that purchased cash round these ranges early this yr and revenue taking by long-term holders.
Coinbase premium
Coinbase premium indicator, which measures the unfold between BTC’s dollar-denominated value on the Coinbase trade and tether-denominated value on Binance, is broadly seen as a proxy for demand from the U.S.-based traders.
Previously, sustained BTC bull runs have been characterised by an uptick within the Coinbase premium.
Nonetheless, since late April, the seven-day transferring common of the Coinbase premium has diverged bearishly from the worth.
Bitcoin Coinbase premium. (CryptoQuant)
Bearish RSI divergence
Whereas BTC set a brand new multi-week excessive in the course of the Asian session, the 14-hour relative power index, an indicator used to gauge momentum and overbought and oversold circumstances, did not comply with go well with.
The ensuing bearish divergence suggests the momentum could also be weakening.
BTC’s hourly chart. (Velo Information/TradingView)
