Bitcoin (BTC) is rapidly closing in on the $100,000 mark, driven by anticipation of a major trade deal hinted at by U.S. President Donald Trump, with speculation that the deal could involve the U.K.

This price surge aligns with Bitcoin’s bullish technical setup and the overall positive sentiment in traditional markets. Asian stock markets have posted gains, and futures for the S&P 500 have risen by 0.6%, contributing to the overall risk-on environment that benefits Bitcoin.

However, there are several factors that suggest the journey to $100,000 may not be smooth sailing.

Uncertainty Over Trade Deal Details

A report from the Wall Street Journal has raised doubts about the extent of Trump’s proposed trade deal. According to the report, the announcement could end up being a framework for discussions rather than an actual finalized agreement. This suggests that the immediate impact of the trade deal might be more limited than expected, and any excitement from the initial announcement could quickly fade, dampening bullish momentum in the market.

$99,900 Resistance Level Looms

Bitcoin’s price is approaching the key $99,900 level, where it may face significant resistance. Traders who bought Bitcoin earlier this year around this price point may look to take profits, adding selling pressure. This could make it difficult for Bitcoin to push past this resistance level, stalling the rally and potentially causing a short-term pullback before a successful breakout over $100K.

Divergence in the Coinbase Premium

The Coinbase premium, which measures the difference between Bitcoin’s price on Coinbase and Binance, is often used as a barometer for U.S. investor demand. Historically, large Bitcoin rallies have been accompanied by an increase in the Coinbase premium. However, since late April, the premium has shown signs of divergence from the price action, indicating a decline in demand from U.S. investors. This weakening demand could signal that the bullish rally may lack the necessary fuel to push Bitcoin much higher in the short term.

Bearish RSI Divergence Signals Waning Momentum

Bitcoin recently set a new multi-week high during the Asian trading session, but the 14-hour relative strength index (RSI) failed to follow suit, resulting in a bearish divergence. This divergence suggests that Bitcoin’s momentum is starting to wane, signaling that the current upward movement may be losing strength. If this trend continues, Bitcoin could struggle to maintain its upward trajectory and face a potential reversal.

In conclusion, while Bitcoin is on the verge of hitting $100,000, several factors—such as uncertainty around the trade deal, resistance at $99,900, weakening demand from U.S. investors, and a bearish divergence in momentum indicators—suggest that the rally may face challenges in the near term. Traders should remain cautious as Bitcoin approaches this key psychological level, as it may not be a straightforward path to the $100K milestone.