Bitcoin (BTC) remains on a strong upward path, holding above a key trendline despite a brief pause over the past 24 hours. The near-vertical trendline from lows just below $110,000 was tested early today and successfully held, reinforcing the resilience of the current rally.
Analysts note that traders who missed the initial surge may consider using call spreads as a risk-efficient strategy to capture potential gains.
Bitcoin’s Next Moves
A decisive breakout above the expanding triangle’s upper boundary on the daily chart could open the door toward $135,000–$140,000, with that boundary having acted as resistance earlier this week. On the other hand, a drop below the hourly ascending trendline could trigger a corrective phase, with the first support level near $118,000.
Traditional Markets Offer Mixed Signals
Macro indicators present a nuanced backdrop for crypto:
- Bullish cues: The MOVE index, which tracks expected volatility in Treasury notes, fell below 70 on Monday—its lowest since December 2021—pointing to easier conditions for risk assets.
- Cautionary signals: The U.S. dollar index (DXY) is forming a potential bullish double-bottom, while the 10-year Treasury yield has risen 16 basis points to 4.16%, partially offsetting the September 25-basis-point Fed rate cut.
Goldman Sachs also highlighted that shocks in Japan’s bond market, influenced by the new Prime Minister’s Abenomics policies, could spill over into U.S. Treasuries and other global bonds, adding uncertainty for risk assets, including crypto.
Traders should watch these indicators closely, as continued strength in the dollar or yields could weigh on Bitcoin’s rally.
Ethereum Shows Bullish Continuation Potential
Ether (ETH) has risen 4% and formed a bull flag breakout on the weekly chart—a pattern signaling a likely continuation of the prior upward trend. A rally above $5,000 could indicate the next leg higher, while a weekly decline would suggest growing bearish pressure.
