Bitcoin (BTC) is on the verge of breaking the $118,000 mark for the first time since mid-August, demonstrating resilience even in the face of a U.S. government shutdown. As the cryptocurrency market opens the month of October, Bitcoin’s price surged following disappointing labor market data, indicating a bullish sentiment among investors.
Data from Cointelegraph Markets Pro and TradingView revealed that Bitcoin reached a high of $117,713 after the announcement of weak employment numbers from the U.S. private sector. This high is just shy of the asset’s September peak and sets the stage for the potential to achieve its highest levels since August 17. Popular trader and analyst Rekt Capital noted the significance of this breakout attempt at the start of October, emphasizing its importance for the overall trend.
The latest jobs report showed that the U.S. economy added only a fraction of the expected 45,000 jobs for September, a development that has historically benefited crypto and other risk assets. This labor market weakness is believed to increase the likelihood of future interest rate cuts, which could attract more capital into the crypto market. Insights from the CME Group’s FedWatch Tool suggest that the market is heavily favoring a 0.25% interest rate cut at the upcoming Federal Reserve meeting.
Another trader, Jelle, was optimistic about Bitcoin’s price action, stating that it was overcoming resistance levels with apparent ease. Many analysts believe that clearing September highs would put selling pressure on bearish positions, allowing the cryptocurrency to rally further. Meanwhile, trading account Daan Crypto Trades pointed out that $112,000 serves as vital short-term support, encouraging a sustained upward trajectory.
Despite the looming government shutdown, market sentiment has remained largely positive. Both the S&P 500 and the Nasdaq Composite opened the day higher, while precious metals like gold solidified their positions after reaching new all-time highs earlier in the day. Trading firm QCP Capital commented that the government shutdown is unlikely to have a significant impact on risk assets, suggesting it should be considered more of a non-event than a threat.
QCP noted, “Fiscal theater in the U.S. is typically a market non-event beyond delays in data releases and some headline noise.” Historical events shed light on this stance; during the 2018 government shutdown, the S&P 500 ended the period on a positive note, up 10%. Given Bitcoin’s high correlation with equities, QCP posited that any dips attributed to the shutdown might present a buying opportunity rather than a cause for immediate concern.
As Bitcoin navigates this current landscape, market participants remain vigilant, attentively watching for signs of bullish momentum while also being cautious of potential support levels. In the coming days, a proper breakout above the current resistance levels could signal a move toward new highs, continuing a trend observed for several weeks.
This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct thorough research before making any financial decisions.
