Bitcoin is making a notable attempt to break past the $118,000 mark for the first time since mid-August. Recent developments in the U.S. labor market have provided a favorable backdrop for cryptocurrencies and other risk assets, even in light of the current government shutdown. Analysts point to any dips in Bitcoin’s price as potential buying opportunities, reflecting a bullish sentiment in the market.
Data from Cointelegraph Markets Pro and TradingView indicates that Bitcoin (BTC) reached a price of $117,713 shortly after the latest U.S. jobs data was released. This puts the cryptocurrency within striking distance of surpassing its September high, which could lead to BTC’s highest price levels since August 17. Notable trader and analyst Rekt Capital highlighted Bitcoin’s attempt to break out of its monthly range right at the beginning of October.
In a surprising turn, U.S. private-sector employment numbers for September fell short of expectations, showing a decline rather than the projected gain of 45,000 jobs. The weakness in the labor market is perceived as a possible catalyst for upward movement in crypto markets, as it increases the likelihood of interest rate cuts that could attract more capital inflows. Current data from CME Group’s FedWatch Tool suggests that markets are favoring a 0.25% rate cut by the Federal Reserve in its upcoming October meeting.
Another trader, Jelle, observed that Bitcoin appears to be pushing through resistance levels with ease, suggesting that clearing the September highs could leave bears feeling cornered. On the other hand, trading account Daan Crypto Trades noted that the $112,000 level would serve as an important support area, cautioning against a revisitation of this price. The momentum now lies with the bulls, who need to sustain a breakout and secure daily closes above the resistance channel to indicate readiness for a potential move to new highs.
Despite the U.S. government shutdown, which has historically disrupted markets, the mood surrounding risk assets remains optimistic. Both the S&P 500 and Nasdaq Composite Index opened modestly higher, while gold stabilized following a recent all-time high. QCP Capital emphasized that the shutdown should have minimal impact on market sentiment, labeling it a “non-event.” They noted that essential services will continue and that past government shutdowns have not derailed risk assets, citing that the S&P 500 rose 10% during the 2018 shutdown.
In summary, Bitcoin’s current trajectory indicates a strong market response to economic data, with traders viewing any price dips as buying opportunities amid optimism in broader risk assets.
