Bitcoin stabilizes above $114,000 amid government shutdown concerns and anticipation for 'Uptober'
|- Bitcoin rebounded to $114,000 on Monday after seeing a recovery over the weekend.
- BTC's recovery comes amid growing anticipation for a bullish October.
- Speculations of a government shutdown could weigh on market sentiment.
Bitcoin (BTC) traded above $114,000 on Monday despite a previous week of consolidation, with prices dipping to $109,000 into the weekend. The rebound reflects a positive — though cautious — sentiment from investors ahead of a seasonally bullish month of October, as markets anticipate the release of the US Non-Farm Payroll (NFP) data on Friday.
Bitcoin steadies at $114,000 as market maintains caution ahead of historic 'Uptober'
Bitcoin is showing signs of a recovery on Monday, rising to $114,000 as it attempts to recover losses from a pullback to $109,000 last week.
The rebound follows BTC's Relative Strength Index (RSI) dropping from 60.7 to 34.6, breaking below the statistical low band of 41.1, according to a Glassnode report on Monday. Such levels often indicate seller exhaustion and have historically preceded price stabilization or a short-term recovery, the report states.
This is evident in the perpetual futures market, where open interest (OI) rose from $42.8 billion to $43.6 billion. Deribit also recorded a 13% rise, while Hyperliquid's long bias rebounded to 57% from 36% last week, according to QCP analysts in a Monday note to investors.
However, investors remain somewhat cautious, as the options market indicates that traders are still exhibiting signs of hesitation.
The cautious sentiment comes amid growing speculation of a US government shutdown, which could affect the release of the Non-Farm Payrolls (NFP) report this Friday. QCP highlighted that traders have remained "relatively unfazed" despite rising concerns.
"While there are questions around whether NFP could be delayed if the US government shuts down, markets appear relatively unfazed, buoyed by Wall Street's gains," QCP analysts stated.
It's unclear if such a move could strengthen a sideways price action or add to Bitcoin's volatility.
Regardless, Bitcoin's price is still trading over 5% higher month-on-month. The current rebound also reflects possible anticipations for a seasonal "Uptober" rally.
However, QCP analysts noted that BTC must break above $115,000 to confirm a sustained uptrend. This week's ETF flows could also set the tone for institutional demand heading into a seasonally bullish month, they added.
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