Bitcoin Defies Government Shutdown, Eyes $120,000 Milestone
Despite the recent U.S. government shutdown – the first since 2018, furloughing 750,000 federal workers and incurring an estimated $400 million daily cost – Bitcoin has demonstrated remarkable resilience, surging past the $116,000 mark with a 3% daily gain. This unexpected rally has analysts speculating if $120,000 is the next psychological target for the leading cryptocurrency.
Fueling the Ascent: ETFs, "Uptober," and Bullish Signals
Bitcoin's current momentum is bolstered by several key factors. U.S. spot Bitcoin Exchange-Traded Funds (ETFs) experienced robust net inflows of $3.53 billion in September, with a significant $429.9 million inflow recorded on September 30, led by major players like BlackRock, Ark, and Fidelity. Furthermore, on-chain and derivatives data paint a healthy market picture, indicating that leverage has reset, funding levels have normalized, and open interest remains steady, all signaling a green light for Bitcoin's upward trajectory. Technical analysis supports this bullish outlook, highlighting a multi-week bull flag formation. Historically, October, or "Uptober," often brings strong market performance following a positive September close. Adding to the long-term optimism, Telegram's Pavel Durov recently reiterated his $1 million Bitcoin target, emphasizing the cryptocurrency's fixed supply amidst ongoing fiat money printing—a sentiment often observed during mid-cycle expansions.
Key Levels and Analyst Outlook
In the immediate term, Bitcoin faces resistance around $117,500. A definitive daily close above this level could pave the way for a push towards the $119,300-$120,300 range, with $120,000 serving as a crucial psychological benchmark. Order-book heatmaps reveal substantial short liquidity, estimated at $7 billion, between $118,000 and $119,000, suggesting a potential squeeze if this barrier is breached. On the downside, bulls are looking to defend the $114,800-$115,200 zone, with the $112,000 pivot identified as a critical support level. A break below this would expose a larger liquidity pocket at $107,000-$108,000, representing approximately $8 billion in long liquidations. Prominent analysts like MN van de Poppe, Ted Pillows, and Daan Crypto Trades largely concur with this strategy: hold $112,000, break past $117,500, and propel towards new highs in Q4.
