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Bitcoin prices rebounded as traders expected the US government shutdown to end this week.
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Bitcoin market analysis shows that after a strong week of trading, Bitcoin is expected to tighten towards $112,000.
Bitcoin (BTC) rebounded overnight, rising as much as 5% to trade above $106,000 in Asian trading on Monday as bulls looked to sell liquidity. Traders expected the U.S. government shutdown to end soon and risk sentiment to rise.
Will the US government reopen this week?
The BTC/USD pair is trading at $106,438 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
On Sunday, US President Donald Trump announced that most Americans would receive a $2,000 “dividend” from tariff proceeds, sparking a late weekend backlash.
Related: Bitcoin Treasury Bear Market Signs Ending as Short Sellers Exit MSTR
The recovery is expected to continue this week following news that the US Senate has reached a bipartisan agreement to end the longest government shutdown in US history, which lasted 40 days.
Prediction markets sharply reversed on the news, with Polymarket bettors pinning an 85% chance that the government shutdown will end between November 12th and November 15th.
Just 24 hours ago, traders saw a 63% chance the shutdown would extend beyond Nov. 16 and into Thanksgiving.
Competing platform Calci’s odds are similar, estimating a 90% chance that the government shutdown will end on Friday, 44 days later.
The end of the US government shutdown will free up billions of dollars in Treasury cash, injecting liquidity into the market and boosting risk assets like Bitcoin.
“It’s going to be an interesting week. The government shutdown could be nearing an end,” Bitcoin trader Daan Crypto Trades said in a post on X, adding:
“This means that liquidity will be restored and economic indicators such as CPI will be available soon.”
The last time the U.S. government was shut down was during the Trump administration’s first term, from late December 2018 to late January 2019. After closing on January 25, 2019, Bitcoin rose more than 265% over the next five months, from $3,550 to $13,000.
🇺🇸Senators just reached an agreement to end the U.S. government shutdown.
last time #bitcoin When this happened it became parabolic 👀 pic.twitter.com/npNCKGm44n
— Vivek Sen (@Vivek4real_) November 10, 2025
Liquidity cluster is above $112,000
Several traders are eyeing liquidity gains that could push sell orders above $112,000.
According to the latest data from monitoring resource CoinGlass, the price is eating up liquidity around $106,000, with most of the interest focused above $112,000.
Most of the liquidity is between $111,500 and $115,000. A breakout of the $115,000 level could trigger a liquidation squeeze, forcing short sellers to exit their positions and pushing the price towards the next major liquidity cluster at $117,000.
“BTC is at resistance and testing the broken annual trend line against itself,” analyst AlphaBTC said in an X-post on Monday.
The accompanying chart shows “a clear area to target around $112,000, where liquidity is above the early November consolidation,” the analyst said.
“The area to watch is $110,000 to $112,000 to see if Bitcoin can break through the $107,000 resistance.”
As reported by Cointelegraph, Bitcoin’s bullish weekly closing price above its 50-week SMA increases the chances of BTC price reaching above $112,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should conduct their own research when making decisions.