Bitcoin experienced a significant rally overnight, with the price increasing by as much as 5% during Monday’s Asian market session, trading above $106,000. The rally appears to be driven by traders betting that the end of the US government shutdown is near, causing turmoil in financial markets and impacting global risk sentiment. Optimism surrounding the crypto market and Bitcoin’s bullish trajectory is growing as political efforts to reopen the government progress.
- Bitcoin soared more than 5% to more than $106,000 as expectations for a government shutdown resolution grew in Asia.
- Market analysts expect the stock could rise towards $112,000 after a solid week of trading.
- The US Senate has reached a bipartisan agreement, likely ending the longest government shutdown in history.
- Traders are targeting liquidity above $112,000, and a breakout of the key resistance level could put a squeeze on liquidity.
Will the US government reopen this week?
According to market data, Bitcoin is trading around $106,438 on Bitstamp, reflecting a positive reaction to political developments. Last weekend, US President Donald Trump announced that most Americans would receive a $2,000 “dividend” from tariff proceeds, boosting consumer sentiment and risk appetite.
This optimism was further supported by news that the US Senate had reached a bipartisan agreement to end the longest government shutdown in US history, which lasted more than 40 days.
Prediction markets have soared, with the probability that the impending shutdown will end rising to 85%, with platforms such as Polymarket and Kalshi favoring a resolution by mid-November. The potential end of this shutdown is expected to inject billions of dollars into the Treasury and restore liquidity to financial markets, including cryptocurrencies.
Commenting on the Historically, past shutdowns, such as those in early 2019, have been preceded by significant gains in Bitcoin, with the price rising over 265% in the months that followed.
Liquidity cluster is above $112,000
Several traders have noted an uptick in liquidity gains, with sell orders exceeding $112,000. According to CoinGlass data, the majority of liquidity interest is currently between $111,500 and $115,000.
If Bitcoin breaks through the $115,000 resistance, it could trigger a liquidation squeeze and push the price near the next major liquidity target of $117,000. Technicians note that Bitcoin is currently testing major resistance zones, backtesting its annual trend line, and consolidating above support levels.
Analyst AlphaBTC highlighted this zone, noting, “The area to watch if Bitcoin can break through the $107,000 resistance is $110,000 to $112,000,” suggesting a bullish breakout is possible if this momentum continues.
Overall, the correlation between political developments, macroeconomic indicators, and technical levels suggests a cautiously optimistic outlook for Bitcoin in the short term as traders brace for a possible rally towards new highs.