Key Points:
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Bitcoin is about to beat $118,000 for the first time since mid-August.
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Despite US government shutdowns, weakness in the US labor market increases crypto and risky assets.
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According to BTC price analysis, any DIP is a “purchase opportunity.”
Bitcoin (BTC) is now shrugging from US government closures in pursuit of a six-week high since Wall Street opened on Wednesday.
Bitcoin starts in October with a range breakout attempt
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reached $117,713 following weak data in US employment data.
The pair came under $150, beating September’s biggest.
“Bitcoin is already about to break out of its monthly range on the first day of the new month in October,” popular trader and analyst Rekt Capital summed up in his latest commentary on X.
Private sector employment numbers in the US fell far below expectations, negative when estimates were acquired in September of 45,000 jobs.
The weakness in the labour market is seen as a cryptocurrency tailwind, as it increases the likelihood of interest rate reductions and thus increases capital inflows.
The latest data from CME Group’s FedWatch tool showed the market was betting 0.25% on the Federal Reserve reduction rate at its October meeting.
Continuingly, fellow trader gel described BTC price action as “not even there, pushing resistance.”
“The last thing to worry about: Sweeping the highs of September. Once you clear them, the bear will have very few legs to stand up.
Others have focused on potential support retests, with trading account Daan Crypto Trades flagging its $112,000 “major short-term support.”
“Ideally, I don’t want to see the price revisit it,” he wrote along with a chart showing the channels that show prices are about to break through.
“From here to the Bulls to take it, the right breakouts and daily closures above the channel indicate that this is ready for me to move to a new high.”
Meanwhile, the new US government closures have failed to affect buoyant moods across risk assets.
Related: $108K BTC Price PingPong: 5 Things You Need to Know About Bitcoin This Week
Both the S&P 500 and the Nasdaq Composite Index opened modestly, but after reaching the latest new all-time highs earlier in the day, gold was merged.
Comment, trading company QCP Capital said the shutdown is little significant.
“In fiscal theatres, US government closures must be a market that is not non-event, beyond data delays and headline noise,” argued in a recent “Asian Colour” study post.
“The essential services continue, the returned payments limit the impact of income, and past episodes have not derailed risk assets.”
QCP noted that the S&P 500 rose 10% during the 2018 shutdown.
“Given the promotion of the beta to BTC’s stock, shutdown-related dips are considered as opportunities for purchase, rather than chasing the gap-up.”
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.