This is an analysis article Coindesk analyst and Omkar Godbole approved market technician.
There are very few reasons to doubt bitcoin Ascending trajectory at the moment. Although the rally has taken a break in the last 24 hours, the steep upward trend line, close to 90 degrees, from a lower just below $ 110,000 remains solid. In fact, the prices tested this trend line earlier during the day and immediately rebounded, as shown in the graphic in time candlesticks below.
Analysts suggest that those who have missed the initial rally can consider using purchasing spreats to capture new gains in a more effective way in terms of risk.
So then?
A clear break above the upper limit of the expanding triangle on the daily graph could open the way to the range from $ 135,000 to $ 140,000. The upper limit served as resistance on Monday.
On the other hand, if BTC falls below the ascending trend line of the hourly graph, we could attend a corrective phase, with a first level of support around $ 118,000.
What do traditional markets say?
Beyond the BTC, the traditional markets draw up a painting in which scenarios that are both bullish and corrective seem possible.
Haussiers can be reassured by the fact that the MOVE index, which measures the expected volatility of treasury bills, continues to drop. The index fell below 70 on Monday, its lowest since December 2021, reporting easier financial conditions for risky assets.
However, the dollar index (DXY) and the treasury yields remain resilient despite the drop in September rates and the expectations of new flexibility.
The DXY flirts with a double background configuration, while the yield of the treasury to 10 years increased by 16 base points to 4.16 % since the Fed reduced its 25 basis points on September 17. In other words, the yield has at least partially canceled the drop in rates.
To add to this mixture, Goldman Sachs warned that shocks on the Japanese bond market, trained by the bias of the new Prime Minister in favor of ABENOMICS, could affect US Treasury bills and other large bond markets, injecting more uncertainty in the situation.
Traders should keep a careful eye on these indicators, because the continuous force of the dollar and yields could disrupt the cryptography rally.
ETH: burst of the Haussier flag
Ether has increased by 4% to form a burst in bully flag on the weekly graphic. A bullish flag is a counter-temperature consolidation model which generally signals the continuation of the previous Haussier movement. Consider the flag as a break during which the tired bulls come together and bring together forces for the next step.
Perhaps a strong rally above $ 5,000 could loom on the horizon. That said, if we see a massive sale from here resulting in losses by the end of the week, this would be a clear signal that the lowering of the lowering.
