Bitcoin experienced a decline today, moving away from its record high as the U.S. government shutdown entered its seventh day. It dipped to the $121,000 range, remaining below Monday’s peak of $126,296, based on Bitbio data.
Despite this slight drop, Bitcoin has surged nearly 30% since the beginning of the year and is up around 9% over the last week.
Meanwhile, gold has continued its historic rally, briefly surpassing $4,000 per ounce overnight, with futures trading at $3,980 early Tuesday, marking a 50% increase for the year.
Currently, Bitcoin is trading at $122,096.
Markets seem largely unaffected by the shutdown, even after the Senate failed to pass a Republican bill on Monday aimed at reopening government operations.
Bitcoin dips are for buying
Analysts indicate that Bitcoin’s recent correction—from its all-time high to around $122,000—is healthy and could set the groundwork for future gains. The $120,000 level is currently acting as key support, with resistance around $135,000.
“Overall, dips are for buying,” noted market analyst Mags on X, mentioning that a daily close above $123,300 could lead to further upside.
Onchain data highlights strong buying momentum. Glassnode reports that Bitcoin’s relative strength index has climbed from 44 to 66 over the past week, indicating increasing market confidence.
Glassnode also observed a rise in Bitcoin futures open interest as traders added long positions during the breakout to new highs. The current pullback is testing these positions, and observing where buyers re-enter the market will reveal if support levels can draw renewed demand.
The ongoing U.S. fiscal stalemate may be further driving demand for perceived safe-haven assets.
Geoffrey Kendrick, head of digital assets at Standard Chartered, suggested last week that Bitcoin might reach $135,000 soon and possibly $200,000 by the year’s end if conditions remain the same.
As previously mentioned, gold continues its ascent, supported by central bank purchases, dollar weakness, and expectations of future Fed easing.
Investors seem to be positioning for an extended period of policy uncertainty, with both Bitcoin and traditional safe havens benefiting from market apprehensions.
