Bitcoin (BTC) remains on a strong upward trajectory, despite a brief pause in its rally over the past 24 hours. The near-vertical trendline from lows just below $110,000 continues to hold, providing key support. Early trading today saw BTC test this trendline and bounce back, underscoring the resilience of the current uptrend.

Analysts note that investors who missed the initial rally might consider using call spreads as a more risk-efficient strategy to capture potential further gains.

What’s Next for Bitcoin?
A decisive breakout above the upper boundary of the expanding triangle on the daily chart could open the path toward $135,000–$140,000, with this level acting as resistance earlier this week.

Conversely, a break below the hourly trendline could trigger a corrective phase, with the first support level near $118,000.

Traditional Markets: Bullish or Cautionary?
Broader markets provide mixed signals for crypto.

• Bullish indicators: The MOVE index, which tracks expected volatility in Treasury notes, fell below 70 on Monday, its lowest since December 2021, suggesting easier financial conditions for risk assets.
• Cautionary signals: The U.S. dollar index (DXY) and Treasury yields remain firm despite September’s 25-basis-point Fed rate cut. The DXY is flirting with a bullish double-bottom formation, while the 10-year Treasury yield has climbed 16 basis points to 4.16%, partially offsetting the rate cut.

Adding to uncertainty, Goldman Sachs highlighted that shocks in Japan’s bond market, fueled by the new Prime Minister’s Abenomics-style policies, could ripple into U.S. Treasuries and other global bond markets, potentially impacting crypto markets.

Investors should monitor these macro indicators closely, as continued strength in the dollar or yields could hinder Bitcoin’s rally.

Ethereum: Bull Flag Breakout Signals Potential Upside
Ether (ETH) has gained 4% and formed a bull flag breakout on the weekly chart—a pattern indicating a temporary consolidation before the continuation of the prior uptrend.

A rally above $5,000 could mark the next leg higher. However, any sell-off leading to weekly losses would signal growing bearish control and potential downside risk.