Where is BTC Headed after the New ATH?

“Uptober,” a play on the historically bullish month of October for cryptocurrencies, is living up to its name so far, as Bitcoin (BTC) surges to new all-time highs, with altcoins also finding support.

After briefly surpassing $125,000 and pulling back on Sunday, BTC resumed its climb on Monday, reaching a new record high of $126,223 during the U.S. trading session. Most recently, Bitcoin was trading around $125,200, marking a 1.5% gain over the past 24 hours.

The weakness of the U.S. dollar continues to support the rally toward new highs, as the largest cryptocurrency also reached fresh records in euros — above €106,000, surpassing its January peak — and in Swiss francs (99,642 CHF), according to TradingView data.

Bitcoin’s strength has spilled over into the broader crypto market. Ethereum (ETH) rose 4% to $4,700 — its highest price in more than three weeks — leading the broader CoinDesk 20 Index higher. Popular memecoins DOGE and BNB, the Binance network token, also climbed about 6%.

Crypto-related stocks showed mixed performance on Monday. Shares of Robinhood fell 3% after Galaxy Digital announced GalaxyOne — a new crypto trading platform similar to Robinhood’s. Galaxy Digital’s stock jumped 7% as investors bet on direct competition in the brokerage space. Other crypto-linked firms such as Coinbase, Circle, and Michael Saylor’s Strategy closed about 2% higher, following the broader market gains.

“The Bitcoin rally is fueled by a perfect mix of macroeconomic factors,” said Jean-David Peignot, Chief Trading Officer at Deribit, which was recently acquired by Coinbase.

The ongoing U.S. government shutdown is driving investors toward assets like gold and Bitcoin, while strong inflows into Bitcoin ETFs and shrinking exchange reserves are creating a “self-reinforcing bullish cycle,” he noted.

Technical indicators also point higher, with a confirmed double-bottom breakout setting short-term targets around $128,000–$130,000 and a potential top near $138,000. At the same time, analysts warn of an overheated market and the possibility of a brief correction toward $118,000–$120,000.

“From here, watch for spikes in volatility and rising put option volumes as signs of an upcoming correction,” Peignot added. “Bulls are aiming above $130,000, while bears may look for opportunities as the market becomes overextended.”