What to know:
Bitcoin is nearing the $100,000 mark amid speculation of a major U.S.-U.K. trade deal.
The Wall Street Journal suggests the trade deal announcement may only be a preliminary framework.
Key indicators like the Coinbase premium and RSI divergence hint at potential resistance and weakening momentum.
Onchain analysis points to $99,900 as key resistance.
Bitcoin (BTC) is fast closing on the $100,000 mark as U.S. President Donald Trump teased a major trade deal, with reports suggesting it could be with the U.K.
The upswing in prices is consistent with the cryptocurrency's broader bullish technical setup and buoyant risk sentiment in traditional markets. As of this writing, the Asian stocks traded higher, with the futures tied to the S&P 500 up by 0.6%.
STORY CONTINUES BELOW
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Still, a couple of factors suggest the $100,000 breakout may not be a smooth ride.
WSJ pours cold water over optimism
Firstly, as per the Wall Street Journal, the big trade deal that Trump teased on Truth Social could be a "framework of an announcement with tariff adjustments."
In other words, the impending announcement could be a framework of discussions that could lead to a trade deal weeks or months from now. So, the bullish momentum in BTC could slow once the initial optimism fades.
Resistance at $99.9K
As discussed earlier this week, the $99,900 could prove a tough nut to crack due to the potential for increased selling pressure from those who bought coins around these levels early this year and profit taking by long-term holders.
Coinbase
emium indicator, which measures the spread between BTC's dollar-denominated price on the Coinbase exchange and tether-denominated price on Binance, is widely seen as a proxy for demand from the U.S.-based investors
