Highlights:
Bitcoin aims to surpass $118,000, a milestone not reached since mid-August.
Weakness in the US labor market propels crypto and risk assets upward, even with the US government shutdown.
Dips in price are seen as “buy opportunities,” according to BTC price analysis.
Bitcoin (BTC) reached six-week highs after Wednesday’s Wall Street opening as markets overlooked the US government shutdown.
Bitcoin opens October with a breakout attempt
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $117,713 following disappointing US jobs figures.
The pair was just $150 shy of exceeding its September high, which would mark its peak since August 17.
“Bitcoin is attempting to break out of its Monthly Range right at the beginning of October,” noted popular trader and analyst Rekt Capital in his latest update on X.
US private sector employment figures significantly underperformed expectations, reflecting a loss when a gain of 45,000 jobs was anticipated for September.
Weak labor market conditions are viewed as favorable for crypto, as they increase the likelihood of interest rate cuts and subsequent capital influx.
The latest data from CME Group’s FedWatch Tool indicates that markets predominantly expect a 0.25% rate cut by the Federal Reserve in October.
Trader Jelle remarked on BTC’s movement, stating it was “pushing through resistance effortlessly.”
“One remaining thing to consider: a sweep of the September highs. Clear that, and bears will have little support. Upward,” he informed followers on X.
Others pointed to possible support retests, with trading account Daan Crypto Trades identifying $112,000 as critical “short-term support.”
“Preferably, the price shouldn’t revisit that level,” he noted alongside a chart depicting a channel the price was attempting to navigate.
“It’s up to the bulls to move forward. A proper breakout & some daily closes above the channel would indicate readiness for new high moves in my opinion.”
The recent US government shutdown, however, did not dampen the positive sentiment surrounding risk assets.
Connected: BTC price poised for a $108K rally: 5 insights for Bitcoin this week
Both the S&P 500 and Nasdaq Composite Index started slightly higher, while gold consolidated after reaching new all-time highs earlier.
QCP Capital remarked that the shutdown should have minimal impact on the market.
“In terms of fiscal matters, a US government shutdown should be a non-issue for the market except for data delays and temporary headlines,” the firm stated in a recent “Asia Color” research report.
“Essential services will continue, back-pay limits the income impact, and previous episodes haven’t disrupted risk assets.”
QCP highlighted that during the 2018 shutdown, the S&P 500 increased by 10%.
“Given BTC’s high correlation with equities, we view shutdown-related dips as buying opportunities rather than chasing upswings,” they concluded.
This article does not provide investment advice or recommendations. Every investment and trading action carries risk, and readers should perform their own research before making decisions.
