Bitcoin Surges Past $116K Despite U.S. Government Shutdown: Is $120K Next?

Bitcoin blasted via $116,000 with a 3% each day achieve even because the U.S. authorities formally entered shutdown, its first since 2018. The political stalemate over health-care funding has 750,000 federal staff on furlough and will value about $400 million per day, but threat property shook off early nerves.

Crypto’s complete market cap rose 3% to $4.09T, with Bitcoin main and dominance climbing from 57% to 59%, a construction analysts say tends to provide extra sturdy rallies than altcoin-led surges.

Gold’s dash to recent data close to $3,875–$3,895/oz underlined the flight-to-safety backdrop, however BTC’s two-day rebound from $112,000 suggests consumers are treating macro uncertainty as a dip-buying alternative.

Bitcoin ETF Inflows, “Uptober” Tailwinds, and a Bull-Flag Setup

Fueling the rally, U.S. spot Bitcoin ETFs attracted $3.53 billion in web inflows in September, topped by $429.9 million on Sept. 30 (BlackRock, Ark, Fidelity main).

On-chain and derivatives information point out wholesome circumstances as leverage resets after the decline, funding ranges normalize, and open curiosity stays regular, permitting BTC to renew its upward pattern.

Technical analysts level to a multi-week bull flag with the value now pushing towards the higher boundary, mirroring patterns seen earlier than earlier impulsive strikes. Seasonality additionally favors the market, with “Uptober” historically displaying sturdy efficiency after a optimistic September shut.

Telegram’s Pavel Durov even revived long-term optimism, reaffirming a $1 million BTC goal pushed by mounted provide versus cash printing, sentiment usually seen throughout mid-cycle expansions.

Bitcoin’s Key Levels to Watch Out

In the close to time period, Bitcoin resistance is round $117,500. A transparent reclaim and each day shut above this stage may pave the best way towards $119,300–$120,300, with a psychological goal close to $ 120,000.

Order-book heatmaps point out important brief liquidity between $118,000 and $119,000 (about $7 billion), which may set off a squeeze if this stage is damaged.

On the draw back, bulls intention to defend the $114,800–$115,200 zone first, then the $112,000 pivot recognized earlier than the bounce; under that, there’s a bigger liquidity pocket at $107,000–$108,000 (roughly $8 billion in lengthy liquidations).

Analysts MN van de Poppe, Ted Pillows, and Daan Crypto Trades all agree on the identical technique: maintain $112,000, break above $117,500, after which let momentum push towards new highs into This autumn.

Cover picture from ChatGPT, BTCUSD chart from Tradingview