Bitcoin breaks above $125,000 as shutdown fears brings Crypto safe-haven demand

Bitcoin had been steadily consolidating above the $110,000 mark since July (dipping only twice below before rallying consequently), but hadn’t been able to retake its record levels.

Hesitancy was the norm: Summer trading tends to reduce inflows, and supplemented with weakening US Data, the Greenback finding a bottom (will it hold?) and Gold taking all the attention, Cryptocurrencies were a bit more timid.

Timid but solid, however, a lack of pursued upside was far from implying weakness.

The Crypto Market Cap held steadily around and above the 2021 and 2024 peaks, proof that buyers were not backing out of historically elevated valuations.

Nonetheless, a mid-to-end September selling wave gathered fears, shaking out weak hands before rallying 14% (!) to the current + $125,000 record.

Some Bloomberg Analysts have reported that, amid the US Government shutdown, some investors rushed into Bitcoin as a safe-haven, amid American political uncertainty grows again.

This view was also expressed in one of our previous Crypto editions last week. It still holds some valid levels for anyone interested.

Let's take a detailed look at Bitcoin to look what technicals took the nº1 Crypto to the ongoing breakout.

Read More:

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• Markets Weekly Outlook - Navigating the US Shutdown & Global Trends as Equity Markets Continue to Soar

The current rally from Friday September 26th lows has completely undone the sequence taking momentum to bearish territory:

A fail to close below the September 1 lows, combined with the change of narrative from the post-September FOMC meeting led to the current tight bull channel price action.

There hasn't been a red daily candle in BTC in eleven sessions including the weekends and momentum is not overbought yet.

Let's take a closer look.

The past week's huge momentum has largely assisted buyers to break all types of resistances including the $117,000 pivot and the $120,000 psychological level.

The last lows marked a new upward channel within which prices are evolving, with the higher bound located right around $135,000, in confluence with major Fibonacci extension levels.

In any case, there will have to be more work done with the RSI in overbought territory on the intraday.

Holding between $120,000 to $125,000 as momentum cools down would further boost the chances of pursuing the price discovery.

Levels of interest for BTC trading:

Support Levels:

• $120,000 micro-support to hold for further continuation
• Pivot Zone $115,000 to $117,000
• $108,000 to $110,000 previous ATH support zone (September 26th lows)
• $106,000 mini-support
• $100,000 main support at the psychological level

Resistance Levels:

• Current ATH Resistance $123,000 to $125,000 (testing, need to close above for bulls/below for bears)
• Current all-time high $125,420
• Potential minor Resistance at Fib Extensions between $127,000 to $128,200
• Fib-induced Major potential resistance and channel upper bound $135,000

The ongoing momentum has formed an upward intraday channel within which prices are evolving.

Looking at the high RSI levels consolidating, it seems that profit-taking is slowing down progress a bit, hinting at some rangebound action between the intraday resistance ($124,500 to $125,500) and support ($121,000 to $122,000 – in confluence with the 50-Hour MA).

Watch for breakouts above and how it revolves into the broad Crypto market:

The Total Market Cap is breaking new records which coincides with the current rally and altcoins seem to only start getting tractions.

Polkadot, Dogecoin, Ethereum and BNB are the main contenders but look for further widespread buying if BTC consolidates at current ATH levels.

Safe Trades!