Bitcoin (BTC) maintains its upward momentum, holding above a key trendline despite a slight pause in the rally over the past 24 hours. The near-vertical trendline from lows just under $110,000 was tested early today and successfully held, reinforcing the strength of the ongoing uptrend.
Analysts note that traders who missed the initial surge may consider using call spreads to capture gains in a more risk-efficient manner.
Outlook for Bitcoin
A breakout above the expanding triangle’s upper boundary on the daily chart could pave the way toward $135,000–$140,000, a level that acted as resistance earlier this week. Conversely, a break below the hourly ascending trendline may trigger a corrective phase, with the first support near $118,000.
Traditional Markets Signal Both Opportunities and Risks
Macro indicators present a mixed picture for crypto investors:
- Positive signs: The MOVE index, tracking expected volatility in Treasury notes, fell below 70 on Monday, its lowest level since December 2021, indicating 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 negating September’s 25-basis-point Fed rate cut.
Adding to uncertainty, Goldman Sachs warned that shocks in Japan’s bond market, influenced by the new Prime Minister’s Abenomics-style policies, could spill over into U.S. Treasuries and other global bonds, potentially affecting crypto markets.
Traders should monitor these factors, as sustained strength in the dollar or yields could challenge Bitcoin’s rally.
Ethereum Forms Bull Flag, Eyes $5,000
Ether (ETH) gained 4%, forming a bull flag breakout on the weekly chart—a consolidation pattern that typically signals continuation of the preceding upward trend. A rally above $5,000 could mark the next leg higher, while any weekly losses would indicate growing bearish pressure.
