Bitcoin has broken above the key $120,000 level for the first time since August.
\nThe rally is fueled by renewed optimism about macroeconomic tailwinds.
\nBTC futures open interest has hit a record high of $32.6 billion.<\/p>\n
The bulls are back in charge. Bitcoin has shattered the critical $120,000 resistance level, surging to a height not seen since mid-August as a powerful wave of optimism sweeps through the market.<\/p>\n
The breakout, which follows a steady five-day climb, signals that traders are decisively positioning for a bullish final quarter of the year, undeterred by the political chaos unfolding in Washington.<\/p>\n
This is a rally built on both renewed macroeconomic hope and a powerful internal market dynamic.<\/p>\n
In the derivatives market, the conviction is palpable, with open interest in BTC futures soaring to a new record high of $32.6 billion, a clear sign that traders are placing big bets on further upside.<\/p>\n
Beneath the surface of this bullish momentum, a potentially explosive setup is taking shape.<\/p>\n
On-chain analyst Skew has noted that even as open interest soars, a significant number of short positions are also piling up.<\/p>\n
This creates the perfect conditions for a \u201cshort squeeze,\u201d a violent upward price move that is triggered when a rising price forces a cascade of short-sellers to buy back their positions, adding even more fuel to the rally\u2019s fire.<\/p>\n
Ironically, the political crisis in the United States may be a key catalyst for the market\u2019s renewed optimism.<\/p>\n
The ongoing government shutdown has injected a dose of profound uncertainty into the economic picture, a chaos that traders seem to believe will ultimately benefit risk assets like Bitcoin.<\/p>\n
Treasury Secretary Scott Bessent warned on Thursday that the shutdown could have a real and damaging impact.<\/p>\n
\u201cWe could see a hit to the GDP, a hit to growth and a hit to working America,\u201d he told CNBC.<\/p>\n
This economic weakness, coupled with the fact that the Federal Reserve will be deprived of a fresh jobs report, makes an interest rate cut at the end of this month all but a certainty.<\/p>\n
The sheer strength of the recent advance has been enough to turn even the skeptics into believers.<\/p>\n
Paul Howard, a senior director at the crypto trading firm Wincent, admitted he had been skeptical about a rebound earlier in the week, but the market\u2019s relentless climb has changed his mind.<\/p>\n
\u201cWith $BTC trading back at levels last seen in mid-July, the total market cap is once again above $4 trillion,\u201d he noted.<\/p>\n
We have seen a slow grind higher breaking above $115,000, indicating we are now more likely to stay above this level, with a CME gap to lock in the floor at $110,000.<\/p>\n
His conclusion is now as bullish as the market\u2019s momentum. \u201cI believe we are now set to see a sustained rally above $120,000 in the coming weeks,\u201d he added.<\/p>\n
The quiet days of late September are over, and the battle for the next leg higher has begun.<\/p>\n
The post Bitcoin hits a 6-week high above $120,000, defying a government shutdown<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin has broken above the key $120,000 level for the first time since August. The rally is fueled by renewed optimism about macroeconomic tailwinds. BTC futures open interest has hit a record high of $32.6 billion. The bulls are back in charge. Bitcoin has shattered the critical $120,000 resistance level, surging to a height not […]<\/p>\n","protected":false},"author":0,"featured_media":4902,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-4901","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/4901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=4901"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/4901\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/4902"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=4901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=4901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=4901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}