Bitcoin eyes $117K as US government shuts down

The cryptocurrency market is experiencing mixed performances as the US government officially shuts down. Bitcoin is currently performing positively and eyeing new weekly highs while altcoins continue to falter. US government officially shuts down, analysts warn of downward risks The US government has officially shut down for the first time in six years. This latest development comes after a deadlocked Congress failed to pass a funding measure to keep the lights on. While each shutdown differs, functions that are critical to protect lives and property are typically deemed essential and stay open. In the past, shutdowns have affected immigration hearings, while also delaying federal lending to homebuyers and small businesses. Analysts have cautioned traders about the ongoing events, as many believe assets could react to the government shutdown. Bitcoin maintains its price above $114K and could rally higher in the near term. However, most altcoins have turned red despite recording some gains earlier this week. Analysts at Bitfinex pointed out that the shutdown would halt the release of key economic indicators such as the jobs data and CPI inflation. The delay in these reports could cause volatility across various asset classes, including cryptocurrencies. The analysts added that, For markets, the immediate risk is confidence erosion and data blind spots, rather than systemic financial instability. Bitcoin eyes fresh upside as support at $113K holds Despite the US government shutdown, Bitcoin’s price has remained above $114k and could rally higher in the near term. The BTC/USD 4H Chart remains bearish and efficient, but could switch bullish if the current market conditions persist. BTC is up by nearly 2% since the start of the week and is now trading at $114,522. It closed above the 50-day Exponential Moving Average (EMA) at $113,402 on Tuesday and could rally higher towards the $117k resistance level over the next few hours or days. The Moving Average Convergence Divergence (MACD) had a bullish crossover earlier this week, suggesting that buyers are gaining control of the market. The RSI of 66 also shows that BTC is currently in the bullish region. If the 50-day EMA at $113,402 continues to hold as support, the leading cryptocurrency could rally towards the next major resistance level at $117K in the near term. The $120k psychological mark remains a strong resistance level at the moment. However, if the market negatively reacts to the government shutdown, Bitcoin and other major assets could record losses. This could see Bitcoin fail to hold the support around the 50-day EMA and close below, allowing it to test the next daily support level at $107,245 over the next few days. The current market conditions remain choppy, with no clear direction. With the fourth quarter commencing, traders are already looking forward to key economic indicators that could determine Bitcoin’s performance over the next few months. The post Bitcoin eyes $117K as US government shuts down appeared first on Invezz