Highlights:
Bitcoin is attempting to surpass $118,000 for the first time since mid-August.
Weakness in the US labor market boosts crypto and risk assets despite the government shutdown.
Price dips are viewed as “buy opportunities,” according to BTC analysis.
Bitcoin (BTC) aimed for six-week highs after the Wall Street open on Wednesday, with markets ignoring the US government shutdown.
Bitcoin kicks off October with a breakout attempt
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD hit $117,713 in response to weak US jobs data.
The pair was just $150 shy of breaking its September high—achieving this would place it at its highest since August 17.
“Bitcoin is attempting a breakout from its Monthly Range already on the first day of October,” noted popular trader and analyst Rekt Capital in his latest commentary on X.
US private-sector employment numbers fell significantly short of expectations, with a projected gain of 45,000 jobs for September turning negative.
This labor market weakness is viewed as a positive for crypto, as it increases the likelihood of interest-rate cuts, leading to greater capital inflows.
The latest information from CME Group’s FedWatch Tool showed that markets predominantly expect the Federal Reserve to cut rates by 0.25% during its October meeting.
Trader Jelle observed BTC’s price action as “breaking through resistance effortlessly.”
“One last point to consider: a sweep of the September highs. Clear those, and bears will have very little to support them. Higher,” he told his followers on X.
Others pointed out potential support retests, with trading account Daan Crypto Trades highlighting $112,000 as “key short-term support.”
“Ideally, we don’t want to see the price drop back to that,” he wrote with a chart showing a channel that the price was trying to break through.
“It’s up to the bulls now; a proper breakout and daily closes above the channel would indicate readiness for a move to new highs.”
The recent US government shutdown, however, did not seem to dampen the optimistic sentiment across risk assets.
Related: BTC price projected to fluctuate around $108K: 5 key points regarding Bitcoin this week
Both the S&P 500 and Nasdaq Composite Index saw modest gains, while gold stabilized after reaching its latest all-time highs earlier in the day.
According to trading company QCP Capital, the shutdown should be of little consequence.
“On fiscal matters, a U.S. government shutdown is unlikely to significantly impact the market, apart from some data delays and headline noise,” they stated in their latest “Asia Color” research piece.
“Essential services will continue, back-pay limits income effects, and historical instances haven’t negatively impacted risk assets.”
QCP noted that during the 2018 shutdown, the S&P 500 ended up 10% higher.
“Given BTC’s heightened beta to equities, we view shutdown-related dips as buying opportunities rather than chasing after gap-ups,” they concluded.
This article does not provide investment advice or recommendations. All investment and trading actions involve risks, and readers should conduct their own research before making decisions.
