Hopes of an end to the government shutdown boost Bitcoin price: up to $112,000 on the horizon

Hopes of an end to the government shutdown boost Bitcoin price: up to $112,000 on the horizon

The Bitcoin market is tense, but expectations of an early end to the US government could have a significant impact on its price. After more than 40 days of shutdown, the worst seems to be behind us, which strengthens the bullish mood in the cryptocurrency market.

End of the government shutdown in sight

The US Senate has reached an agreement to end the longest shutdown in history - it lasted 40 days. The government is expected to open as early as this week, which could mean the release of billions of dollars from the Treasury Department's reserves. This would increase liquidity in the markets and strengthen interest in risky assets, including Bitcoin.

Market reaction and technical situation

Bitcoin has seen a sharp rise after the news of a possible early end to the shutdown. During Monday’s Asian session, the price rose by as much as 5%, trading above $106,000 and heading towards $112,000. Traders are now mainly watching the area above $112,000, where the most interest in liquidity is concentrated.

Liquidity cluster above $112,000

According to data from CoinGlass, the bulk of liquidity is located in the $111,500 to $115,000 range. If the price breaks through the resistance at $115,000, liquidation pressure could occur, pushing Bitcoin towards $117,000, which is another key area of ​​interest.

Historical connection

A similar situation last occurred in 2018, when Bitcoin rose by more than 265% in the following months after the government shutdown ended. This suggests that the end of the current shutdown could be a signal for further growth.

Outlook and Future Challenges

Bullish sentiment is supported by technical signals, such as the weekly close above the 50-week SMA. If the key levels around $107,000-$112,000 can be broken, the price could continue towards further all-time highs.

Conclusion

The end of the US government shutdown is on the horizon, and with it comes the potential for significant growth in Bitcoin. Investors should mainly monitor the area above $112,000, where increased liquidity and possible significant price movements are expected. This week could be crucial for the future direction of the cryptocurrency market.

*This is not an investment recommendation.

Coingarage Team