Bitcoin experienced a significant rebound overnight, with prices climbing as much as 5% to trade above $106,000 during the Asian market session on Monday. This rally appears to be driven by traders betting on the imminent end of the U.S. government shutdown, which has caused turbulence in financial markets and affected risk sentiment globally. As political efforts advance toward reopening the government, optimism surrounding crypto markets and Bitcoin’s bullish trajectory grows.

Bitcoin surged over 5% in Asia, surpassing $106,000 amid expectations of a government shutdown resolution.
Market analysts forecast potential movement toward $112,000 after a strong weekly close.
The U.S. Senate has reached a bipartisan deal, likely ending the longest government shutdown in history.
Liquidity above $112,000 is being targeted by traders, with a possible squeeze if key resistance levels are broken.

Will the US government reopen this week?

Market data shows Bitcoin trading around $106,438 on Bitstamp, reflecting a positive response to political developments. Over the weekend, U.S. President Donald Trump announced that most Americans will receive a $2,000 “dividend” from tariff revenues, bolstering consumer sentiment and risk appetite.

This optimism is further supported by the news that the U.S. Senate has reached a bipartisan agreement to end the most prolonged government shutdown in American history, which has lasted over 40 days.

Prediction markets surged with the odds of an imminent shutdown ending rising to 85%, with platforms like Polymarket and Kalshi favoring a resolution by mid-November. This potential end to the shutdown is expected to inject billions into the Treasury and bring liquidity back into financial markets, including crypto.

Crypto analyst Daan Crypto Trades commented on X, stating, “This would mean we’d see a boost back in liquidity and also get economic data like CPI and such soon,” highlighting the importance of upcoming macroeconomic indicators for Bitcoin and broader markets. Historically, previous shutdowns, such as in early 2019, have preceded substantial Bitcoin rallies, with prices increasing over 265% in the subsequent months.

Liquidity cluster sits above $112,000

Several traders are eyeing an upward liquidity grab, with ask orders building above $112,000. Data from CoinGlass indicates that the majority of liquidity interest currently sits between $111,500 and $115,000.

If Bitcoin breaches the $115,000 resistance, it could trigger a liquidation squeeze, pushing prices toward the next major liquidity target around $117,000. Technicians note that Bitcoin is currently testing a key resistance zone, backtesting a year-long trendline and consolidating above support levels.

Analyst AlphaBTC highlighted this zone, noting, “$110K-$112K is the area to watch if Bitcoin can push through $107K resistance,” signaling a potential bullish breakout if the momentum continues.

Overall, the correlation between political developments, macroeconomic indicators, and technical levels suggests a cautiously optimistic outlook for Bitcoin in the near term, with traders positioning for a possible rally toward new highs.