Bitcoin extended its bullish momentum this week, climbing above $119,000 and cementing its strong start in October, amid the U.S government shutdown.
The flagship cryptocurrency held above the $115,000 zone before accelerating higher, breaking through successive resistance levels at $117,000, $118,000, and finally $119,000.
A peak was recorded at $119,426 before the price began consolidating gains above the 23.6% Fibonacci retracement of the move from the $112,806 swing low to the $119,024 high.
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At present, Bitcoin is trading well above $117,000 and the 100-hourly simple moving average. Analysts also noted a short-term bullish trend line forming with support at $117,000, signaling resilience in the price structure.
Bitcoin has gained almost 10% over the past week as bulls stage a comeback, echoing the upside in gold. Amid a trip to over $119,500, market participants expect the rally to cool before continuation is possible. This is due to price indicators becoming overheated.
“Uptober” Holds Strong
The surge highlights the strength of the “Uptober” narrative, a recurring seasonal pattern in which October historically delivers robust gains for Bitcoin. This year, the rally has coincided with the U.S. government’s first shutdown since 2018, marking the 11th such disruption in modern history.
With Republicans and Democrats failing to agree on federal spending levels, the shutdown is estimated to cost the U.S. economy $15 billion in lost GDP every week.
According to prediction market Polymarket, there is only an 8% probability of a near-term resolution. Against this backdrop, Bitcoin is increasingly being viewed as a non-sovereign store of value, attracting demand from investors seeking shelter from political dysfunction.
Lucas Kiely, CEO of digital asset wealth manager Future Digital, remarked that market volatility could increase as a result of the uncertainty. He suggested that unless Washington resolves the deadlock quickly, the administration might attempt to push for cuts in the federal workforce, though such measures are likely to face Senate opposition.
Breakout Confirmed, Eyes on $120K–$124K
From a technical standpoint, Bitcoin has broken free from its earlier consolidation phase between moving averages and resistance. Liquidity sweeps and structural shifts now tilt the market strongly bullish. Analysts identify the $120K–$124K region as the next major supply block and liquidity cluster, making it a key upside target.
If a pullback occurs, the $114K–$115K demand zone remains a crucial level. Strong bids there could fuel another rally attempt, while a failure to defend it might drag the price back toward $110K though this appears less probable given the prevailing momentum.
Altcoins Join the Rally
Amid Bitcoin’s recent upward price action, the broader crypto market has also staged a recovery, with the total market capitalization climbing back above $4 trillion. Ethereum trades above $4,300, XRP has rebounded to $2.96, and Binance Coin has surpassed $1,000. Solana reclaimed the $221 level, while Cardano continued its rebound after summer weakness.
Historically, Bitcoin’s strength has preceded capital rotation into altcoins, and traders expect that pattern to unfold once again as Q4 progresses. Analysts forecast that the rally could extend deeper into October, though short-term retests may occur as markets digest recent gains.
Outlook
With the U.S market shutdown, investor flows into Bitcoin demonstrate its resilience during periods of political gridlock. Traders often view decentralized assets as an alternative when traditional markets falter, and the shutdown strengthened that perception.
Despite pullback concerns, traders see Thursday’s rally as proof of Bitcoin’s staying power. The narrative around Uptober, built over years of October gains, adds further fuel to the momentum. A significant number of analysts anticipate the BTC price to hit $120k and above.