Bitcoin is outperforming gold this quarter as rising Treasury yields weigh on the metal, and a chart pattern known as a double-bottom breakout has traders eyeing $100,000. Options markets on Deribit show heavy positioning at that level, though the bullish setup remains a pattern, not a guarantee.
Bitcoin traded around $84,000 on Monday after briefly dropping to lows near $82,500 before bouncing back. The dip capped a quarter in which bitcoin has surged more than 40%, leaving gold, the S&P 500 and every other major asset behind. On the charts, prices have stayed in the $80,000s and above bitcoin's May highs, even as upward momentum loses some steam.
Gold weakens as yields climb
Gold fell nearly 4% on Monday as longer-duration Treasury yields climbed. Those yields hit their highest levels since 2007, lifting the dollar. The dollar index has risen 2.7%, from 98.78 to nearly 101.50, since Sept. 9. Bitcoin, however, slipped just 1% over the same session.
Chart pattern flags a possible breakout
Bitcoin's move above $80,000 has formed a "double-bottom breakout," a bullish technical pattern, according to Jurrien Timmer, director of global macro at Fidelity Investments. Writing on X on Friday, Timmer said: "If it breaks it will confirm a double bottom targeting $100K." Timmer's chart shows bitcoin's two lows this year at $60,033 and $57,742, with the middle peak near $82,800.
Chart patterns are not guarantees, though, and breakouts often fail, reversing and trapping buyers who chased the move.
Options traders position for higher prices
Options traders on Deribit are betting on further gains. The $90,000 call is the most popular bitcoin bet, with $2.45 billion in open interest. The $95,000 call follows with $2.33 billion, and the $100,000 call holds $1.79 billion. A call option gives the buyer the right to buy at a set price and profits when the market rises above it. Still, such positioning can flip quickly if market trends change.
Source: CoinDesk
Trading involves risk.
Risk Disclaimer
