Bitcoin (BTC) is quickly shutting down at the $100,000 mark in a report suggesting that US President Donald Trump teases major trade contracts and may be in the UK.
The price rise coincides with the broader bullish technical setup of cryptocurrencies and the risk sentiment of buoyancy in traditional markets. At the time of this writing, Asian stocks were trading higher, with futures rising 0.6% to the S&P 500.
Still, some factors suggest that a $100,000 breakout may not be a smooth ride.
First, according to the Wall Street Journal, the massive trade deals Trump teased in a true society could become a “targeting of tariff adjustments for announcements.”
In other words, an imminent announcement could be a framework for discussion that could lead to trade transactions in weeks or months. Therefore, the BTC’s bullish momentum could be slower as initial optimism fades.
As discussed earlier this week, $99,900 could prove to be a difficult nut to crack as sales pressure could increase due to increased sales pressure from people who purchased coins around these levels earlier this year and profits from long-term holders.
Coinbase Premium Indicator measures the spread between BTC dollar-dominated prices at Coinbase Exchange and tether removal prices at Binance, and is widely seen as a proxy for demand from US-based investors.
In the past, sustained BTC bull runs have been characterized by rising Coinbase Premium.
However, since late April, Coinbase Premium’s seven-day moving average has diverged badly from price.
The BTC set a new multi-week high during the Asian session, but the 14-hour relative strength index is an indicator used to measure momentum and excess sales conditions and did not follow the lawsuit.
The resulting divergence of bearish suggests that momentum can be weakened.