Daily Crypto Signals: Bitcoin Holds Near $109K, Ethereum Breaks Key Resistance as US Stablecoin Bill Advances
Bitcoin maintains its position near the $109,000 level just shy of its all-time high of $111,980, while Ethereum surged past $2,800 after
Quick overview
- Bitcoin is trading near $109,000, just below its all-time high, while Ethereum has surged past $2,800 after breaking key resistance levels.
- The crypto market is buoyed by lower-than-expected US inflation data and the Senate's progress on stablecoin legislation.
- On-chain data indicates a tightening supply of Bitcoin, contributing to its price strength, while Ethereum shows potential for further gains with strong support levels.
- Several altcoins, including Hyperliquid and Chainlink, are also experiencing bullish momentum, while others like XRP and BNB are consolidating.
Bitcoin BTC/USD maintains its position near the $109,000 level just shy of its all-time high of $111,980, while Ethereum ETH/USD surged past $2,800 following a breakout above critical resistance levels. The crypto market received a boost from cooler-than-expected US inflation data and advancing stablecoin legislation in the Senate.
Crypto Market Developments
The cryptocurrency market showed strength on Wednesday, reacting positively to a number of factors, such as good macroeconomic data and progress in regulation. The US Consumer Price Index (CPI) was 2.4% year-over-year, which was lower than the expected 2.5%. The core CPI was also better than expected, coming in at 2.8% instead of the expected 2.9%. The US Dollar Index dropped to 98.5, its lowest level in months, after this lower inflation data. This made it a good time for risk assets like cryptocurrencies to do well.
The US Senate passed the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act by a resounding 68-30 vote, bringing the bill closer to a full floor vote. This was a promising sign. Senate Majority Leader John Thune spoke out in favor of the bill from the Senate floor, supporting President Trump’s idea of making the US the “crypto capital of the world.” The fact that all parties, including some Democrats, support the bill shows that more institutions are starting to accept digital assets.
International events also made people more hopeful about the market. For example, Ukrainian MPs introduced draft bill 13356, which would let the National Bank of Ukraine include cryptocurrencies like Bitcoin to the country’s national reserves along with gold and foreign currencies. The bill doesn’t require anyone to buy crypto, but it does give institutions more freedom to do so. This is another step toward institutions using digital assets.
But there is disagreement within the Bitcoin community about a software update that is coming shortly. Bitcoin Core 30, which will come out on October 30, will get rid of the 80-byte limit on the OP_RETURN function. This will let each output contain up to 4 gigabytes of data. This development has split the community. Conservatives say it will fill the network with spam, while supporters say it would make Bitcoin useful for more than just money transfers.
Bitcoin Trades Near $109,000
The price of Bitcoin continues to show amazing strength, trading close to $109,000 even if trading volumes are at an all-time low and retail activity is low. The top cryptocurrency momentarily hit $110,000 after the good CPI report, which shows how sensitive it is to changes in the economy.
On-chain data shows a strong supply-side scenario that explains why Bitcoin is so strong. Since the start of 2025, exchange balances have dropped by 14%, to only 2.5 million BTC. This is the lowest level since August 2022. This gradual decrease in accessible liquidity usually means that investors are becoming more confident and coins are being stored in cold storage and custodial wallets.
The picture is considerably worse when you look at over-the-counter desk balances. OTC addresses linked to miners have lost 19% of their value since January and now hold only 134,252 BTC. Analysts call this “stealth accumulation phase” because the tighter supply makes prices rise more even when demand only goes up a little.
Bitcoin is creating a bullish pennant pattern on shorter timeframes, according to technical analysis. The measured increase predicts a target of $115,000. The Relative Strength Index has reset close to the 50 level, which means that the market is consolidating in a healthy way within a higher range. The immediate resistance level is $110,000, and there is also support at $106,748 and $104,900.
In perpetual futures markets, funding rates have become negative even while prices are going up. This is an unusual event that usually happens before big price increases. This pattern has happened three times in this cycle, and each time prices have gone up a lot after it happened. Bitwise researchers have set a high goal of $230,000 by the end of the year. They say this is because of Bitcoin’s projected “fair value” and the possible benefits of economic instability and a better market mood.
Ethereum Tests $2,800
Ethereum had a great day, rising 3% to trade above $2,800 after breaking through key resistance levels that had held it back for more than a month. The second-largest cryptocurrency was able to take back the $2,700, $2,740, and $2,760 supply zones, which are all important levels for holders to keep in mind.
Glassnode’s on-chain analysis shows that Ethereum’s cost basis distribution is rather clear, with no strong resistance levels until $3,417. The $2,700-$2,760 range, which used to be a resistance level, is now thought to be a strong support level as investors who bought during the consolidation phase maintain their positions.
The way to $3,400 looks technically clear. There are just 200,000 to 400,000 ETH in supply levels between the present price and that objective at every $50 gap. This is far less concentrated than the resistance zones that were broken lately. The cost base of about 607,950 ETH is currently at the $3,417 mark, which is the next big hurdle for the price to keep going up.
Technical indicators back up the optimistic view. The 20-day exponential moving average is starting to go up, and the RSI is getting close to being overbought. If the support range that was recently recaptured holds, Ethereum might go for $3,153, with the psychological $3,000 barrier as a level of resistance in between.
The breakout happens at the same time that Ethereum is getting a boost from the same macroeconomic factors that are helping Bitcoin, such as hopes for changes in Federal Reserve policy and more institutional usage. The cryptocurrency is already up 47.5% this quarter, which suggests that the momentum is developing for a long-term rise.
Top Altcoins to Watch Today
- Hyperliquid (HYPE) stands out as a major performer, breaking above its symmetrical triangle pattern and clearing the $42.25 resistance level. The bullish breakout points to pattern targets of $46.50 and potentially $50, with strong support expected between $42.25 and $40 on any pullbacks.
- Chainlink LINK/USD has broken out of its descending channel pattern, surging above both the resistance line and moving averages. The breakout positions LINK for a potential rally to $18, with further upside to $20 if bulls maintain control. The $13.20 level now serves as critical support for the newfound bullish momentum.
- Solana SOL/USD continues to consolidate above its moving averages, targeting the $185 resistance level. A break above this level could trigger moves to $210 and subsequently $220, while support remains at $140.
- XRP XRP/USD and BNB BNB/USD are showing more restrained action, with XRP consolidating between $2 and $2.65, and BNB trading in a $634 to $693 range. Both cryptocurrencies are awaiting clearer directional catalysts.
- Dogecoin DOGE/USD remains range-bound between $0.14 and $0.26, while Cardano ADA/USD is attempting to break above its downtrend line near current levels around $0.70.
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