This is an analysis post by Coindesk analyst and chartered market technician Omkar Godbole.
There is very little reason to doubt Bitcoin’s Upward course right now. Although the rally has been paused over the past 24 hours, the steep, 90-degree appearance line from low-level level just under $ 110,000 is still strong. In fact, prices tested on the trendline early today and jumped right back, as shown in Times Candlestick chart below.
Analysts suggest that those who missed the initial rally may consider using call spreads to capture additional gains in a more risk -efficient way.
What next?
A clean breakout of the growing triangle’s upper limit on the daily chart could clear the path against $ 135,000 to $ 140,000. The upper limit served as resistance Monday.
On the other hand, if BTC falls below the increasing trendline of the hour card, we could see a corrective phase with the first support level around $ 118,000.
What do traditional markets say?
Looking over BTC, traditional markets paint a picture where both bullish and corrective scenarios seem possible.
Bulls can take care of the moving index, which measures expected volatility in the Treasury, continues to fall. The index dipped under 70 Monday, the lowest since December 2021, and signaled more easily financial conditions for risk assets.
However, the dollar index (DXY) and the Treasury outcomes remain resistant despite the September interest rate and expectations to facilitate more.
DXY flirts with a bullish double-bottom pattern, while the 10-year-old treasurer has risen 16 base points to 4.16%, since Fed reduced the rates by 25 basic points on September 17. In other words, the yield has at least partially enchanted the rate.
Adding to the mixture warned Goldman Sachs that Japan’s bond market shock, driven by the new prime minister’s bias for Abenomics, could be wasted into US treasuries and other major bond markets, which injects more uncertainty into the picture.
Dealers should keep an eye on these indicators as continued strength in the dollar and yield may interfere with Crypto’s Rally.
ETH: Bull Flag Breakout
Ether Has risen 4% to form a bull flag -breakout on the weekly chart. A bull flag is a countertrend consolidation pattern that typically signalizes a continuation of the previous upward feature. Think of the flag as a break where tired bulls are being grouped and picks up strength to the next leg.
Maybe a strong rally over $ 5,000 could be on the horizon. That said, if we see a sale from here leading to losses at the end of the week, it would be a clear signal that bears take control.
