Bitcoin market analysis sees a squeeze toward $112,000 after a bullish weekly close.
Bitcoin (BTC) rebounded overnight, rising as much as 5% to trade above $106,000 during the Asian trading session on Monday as bulls targeted sell liquidity. Traders expected that the US government shutdown would end soon, lifting risk sentiment.
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair trading at $106,438 on Bitstamp.
On Sunday, US President Donald Trump announced that most Americans will receive a $2,000 “dividend” from the tariff revenue, sparking a late-weekend rebound.
Related: Bitcoin treasury bear market tipped to end as short seller backs off MSTR
This recovery is expected to continue this week following news that the US Senate has reached a bipartisan deal to end the longest government shutdown in American history, which has lasted 40 days so far.
Following this news, prediction markets flipped sharply, with Polymarket bettors placing the odds of the government shutdown ending between Nov. 12 and Nov. 15 at 85%.
Just 24 hours earlier, traders saw a 63% chance the shutdown would drag beyond Nov. 16 and into Thanksgiving.
Odds on competitor platform Kalshi are similar, estimating a 90% chance the government shutdown will end on Friday, 44 days into the shutdown.
The end of the US government shutdown will free up billions in Treasury cash, injecting the market with liquidity and boosting risk assets, such as Bitcoin.
“It’s going to be an interesting week. Government shutdown potentially close to ending,” said Bitcoin trader Daan Crypto Trades in an X post on X, adding:
“This would mean we’d see a boost back in liquidity and also get economic data like CPI and such soon.”
The last US government shutdown occurred between late December 2018 and late January 2019 in Trump’s first term. After it ended on Jan. 25, 2019, Bitcoin rose over 265% from $3,550 to $13,000 over the next five months.
Several traders eye a potential upward liquidity grab with ask orders building above $112,000.
The latest data from monitoring resource CoinGlass showed the price eating away liquidity around $106,000, with the bulk of interest clustered above $112,000.
The bulk of the liquidity is sitting between $111,500 and $115,000. If the $115,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $117,000, which is the next major liquidity cluster.
“BTC is at resistance, back testing the broken year-long trendline,” said analyst AlphaBTC in an X post on Monday.
An accompanying chart showed an “obvious area to target is where the liquidity is resting above the early November consolidation” around $112,000, the analyst said.
“$110K-$112K is the area to watch if Bitcoin can push through $107K resistance.”
As Cointelegraph reported, Bitcoin’s bullish weekly close above the 50-week SMA increased the odds of BTC price reaching $112,000 or higher.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
