Bitcoin Price: The $100,000 Challenge and What’s Ahead

Bitcoin Price- Risks and Opportunities Explained

Bitcoin Price– Bitcoin (BTC) is approaching the $100,000 mark, spurred by news of a major trade deal teased by U.S. President Donald Trump, with speculation suggesting the deal could involve the U.K. This surge in price aligns with Bitcoin’s bullish technical setup, driven by positive risk sentiment in traditional markets.

Despite the positive trend, Bitcoin’s rise toward $100,000 may face obstacles. The Wall Street Journal reported that the trade deal Trump mentioned could merely be “a framework of an announcement with tariff adjustments.” This suggests that while the initial market excitement may push Bitcoin higher, the momentum could falter if the trade deal is delayed, potentially dampening enthusiasm.

Bitcoin is currently facing resistance at the $99,900 level. As noted earlier, this level could prove challenging due to potential selling pressure from early buyers and long-term holders looking to cash in on profits. The psychological barrier of $100,000 might also add to the selling pressure, making the breakout less certain.

Coinbase Premium Divergence: A Bearish Signal?

The Coinbase premium, a key indicator of U.S. investor demand, has shown signs of divergence. Historically, sustained bull runs have been accompanied by an uptick in this premium. However, since late April, the seven-day moving average of the Coinbase premium has dropped, signaling weakening demand from U.S.-based investors, which could indicate slowing bullish momentum.

In addition to the Coinbase premium divergence, Bitcoin’s 14-hour Relative Strength Index (RSI) has failed to mirror its price rise. The RSI, which helps identify overbought or oversold conditions, has shown a bearish divergence, suggesting that the current bullish momentum may not be sustainable in the short term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.