Bitcoin Eyes $118,000 as US Labor Data Softens, Government Shutdown Ignored

After Wednesday’s market open, Bitcoin (BTC) is attempting to reach levels not seen in six weeks, as financial markets appeared unconcerned by the US government shutdown.

BTC/USD four-hour chart. Source: Cointelegraph/TradingView

Bitcoin Kicks Off October with a Breakout Attempt

Information from Cointelegraph Markets Pro and TradingView indicates that the price of BTC against the US dollar rose to $117,713 after disappointing employment figures were released. The pair nearly surpassed its September high by about $150, achieving this feat would bring it back to highs last observed around August 17th.

Rekt Capital, a well-known trader and analyst, stated on platform X, that “Bitcoin is already attempting to break out of its monthly range on the very first day of October.”

BTC/USD one-month chart. Source: Rekt Capital/X

Figures for private-sector employment in the United States fell significantly short of expectations, registering a negative result when projections anticipated an increase of 45,000 jobs for September.

A weakening labor market is often viewed as a positive factor for cryptocurrencies, as it raises the likelihood of interest rate reductions, which in turn can encourage more capital investment in crypto and other risk assets.

According to the CME Group’s FedWatch Tool, the current market outlook heavily favors the Federal Reserve implementing a 0.25% rate cut at its meeting in October.

Fed target rate probabilities for October FOMC meeting. Source: CME Group

Jelle, another trader, commented that BTC’s price action was “pushing through the resistance as if it weren’t even there.” He added on X, “The last thing to consider is a potential sweep of September’s highs. Clear those, and the bears won’t have much to stand on. Higher.”

BTC/USD chart. Source: Jelle/X

Other analysts are watching for possible support retests. Trading account Daan Crypto Trades identified $112,000 as “key short-term support.”

He wrote, “Ideally, we don’t want the price to revisit that level,” along with a chart illustrating a channel that the price is trying to breach. “It’s up to the bulls from here. A true breakout and several daily closes above the channel would indicate that it’s ready for a move to new highs.”

BTC/USD one-day chart. Source: Daan Crypto Trades/X

Meanwhile, the recent US government shutdown has not impacted the optimistic sentiment across various assets.

Both the S&P 500 and the Nasdaq Composite Index experienced modest gains at the opening, while gold prices held steady following recent record highs.

The trading firm QCP Capital commented that the shutdown should have limited significance. “Regarding the fiscal side, a US government shutdown should be a non-event for the market, aside from some data delays and headline noise,” they argued in their “Asia Color” analysis. “Essential services will still be provided, back-pay limits the effects on income, and previous shutdowns haven’t derailed risk assets.”

BTC/USD vs. S&P 500 one-day chart. Source: Cointelegraph/TradingView

QCP pointed out that during the 2018 shutdown, the S&P 500 increased by 10%. “Considering Bitcoin’s strong correlation with equities, we view any dips related to the shutdown as buying opportunities, rather than chasing after gaps,” they concluded.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing and trading come with risks, and it’s essential for individuals to do their own research before making any decisions.