Bitcoin currently trades at $84,117.13, demonstrating strong resilience as longer-duration yields hit their highest levels since 2007. The crypto asset slipped just one percent on Monday, briefly touching lows near $82,500 before quickly recovering to the $84,000 level.
Gold, in contrast, fell nearly four percent on Monday as rising yields lifted the dollar index. The DXY climbed 2.7 percent from 98.78 to almost 101.50 since Sept. 9, pressuring the yellow metal.
Bitcoin's outperformance extends beyond daily moves. The asset gained more than 40 percent this quarter, outpacing gold, the S&P 500 and other major assets. Its price action consistently holds in the $80,000s, staying above its May highs despite some loss of upward momentum.
This sustained strength above $80,000 triggered a double-bottom breakout pattern, according to Jurrien Timmer, director of global macro at Fidelity Investments. This technical setup confirms a bullish trend, opening the door for a rally to $100,000.
Timmer said on Friday that Bitcoin was challenging $80,000 resistance. Its move above this level confirmed the double bottom, targeting $100,000. A double-bottom pattern on a price chart resembles the letter W, where the price drops to a low, bounces, falls back to a similar level, then rises again.
This pattern indicates that buyers entered the market at a consistent price twice, with the middle peak of the W acting as resistance. A definitive break above this resistance suggests selling pressure has exhausted, signaling a new uptrend.
Timmer's analysis identified Bitcoin's two lows this year at $60,033 and $57,742, with the pattern's middle peak near $82,800. Bitcoin's recent move past $82,000 confirmed this breakout, aligning with Timmer's observations.
Options traders are also positioning for further gains. On crypto exchange Deribit, the $90,000 call option holds the largest open interest at $2.45 billion. The $95,000 call follows closely with $2.33 billion in open interest, while the $100,000 call option commands $1.79 billion in open interest.
Call options grant the buyer the right to purchase an asset at a predetermined price, generating profit if the market price rises above that level. While these positions indicate bullish sentiment, options market trends can shift rapidly with broader market changes.
