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

Bitcoin blasted through $116,000 with a 3% daily gain even as the ￰0￱ officially entered shutdown, its first since ￰1￱ political stalemate over health-care funding has 750,000 federal workers on furlough and could cost about $400 million per day, yet risk assets shook off early ￰2￱ Reading: Tether Scoops $1 Billion In Bitcoin, Strengthening $10-B Stockpile Crypto’s total market cap rose 3% to $4.09T, with Bitcoin leading and dominance climbing from 57% to 59%, a structure analysts say tends to produce more durable rallies than altcoin-led surges. Gold’s sprint to fresh records near $3,875–$3,895/oz underlined the flight-to-safety backdrop, but BTC’s two-day rebound from $112,000 suggests buyers are treating macro uncertainty as a dip-buying opportunity.

BTC's price trends to the upside on the daily chart.). On-chain and derivatives data indicate healthy conditions as leverage resets after the decline, funding levels normalize, and open interest remains steady, allowing BTC to resume its upward ￰3￱ analysts point to a multi-week bull flag with the price now pushing against the upper boundary, mirroring patterns seen before previous impulsive ￰4￱ also favors the market, with “Uptober” traditionally showing strong performance after a positive September close. Telegram’s Pavel Durov even revived long-term optimism, reaffirming a $1 million BTC target driven by fixed supply versus money printing, sentiment often seen during mid-cycle expansions.

Bitcoin’s Key Levels to Watch Out In the near term, Bitcoin resistance is around $117,500. A clear reclaim and daily close above this level could pave the way toward $119,300–$120,300, with a psychological target near $ 120,000. Order-book heatmaps indicate significant short liquidity between $118,000 and $119,000 (about $7 billion), which could trigger a squeeze if this level is ￰5￱ the downside, bulls aim to defend the $114,800–$115,200 zone first, then the $112,000 pivot identified before the bounce; below that, there’s a larger liquidity pocket at $107,000–$108,000 (roughly $8 billion in long liquidations). Related Reading: Did Bitcoin Top?

Top Trader Warns Of Brutal $98,000 Liquidity Sweep Analysts MN van de Poppe, Ted Pillows, and Daan Crypto Trades all agree on the same strategy: hold $112,000, break above $117,500, and then let momentum push toward new highs into ￰6￱ image from ChatGPT, BTCUSD chart from Tradingview