The Bitcoin price has regained bullish momentum, climbing past $106,000 on Monday morning.
The market is likely reacting to the optimism on the possible end of the US government shutdown and President Donald Trump’s new “dividend” announcement.
Market sentiment improves as shutdown nears resolution
Bitcoin (BTC) rose as much as 5% overnight, rebounding strongly during the Asian trading session as bulls targeted sell liquidity above key resistance levels.
The surge followed a late-weekend boost in risk sentiment after President Trump announced that most Americans would receive a $2,000 “dividend” funded by tariff revenue.
Market confidence strengthened further after reports that the US Senate had reached a bipartisan deal to end the longest government shutdown in the nation’s history, which had lasted 40 days.
Prediction markets quickly adjusted to the development, reflecting a sharp rise in expectations that the impasse will conclude this week.
On Polymarket, bettors now place the odds of the shutdown ending between November 12 and November 15 at 85%, compared to just 63% a day earlier.
Rival platform Kalshi shows similar optimism, estimating a 90% chance the shutdown will end by Friday, marking 44 days since it began.
The shutdown’s resolution is expected to unlock billions in Treasury funds, boosting liquidity across financial markets and supporting risk assets like Bitcoin.
“It’s going to be an interesting week. Government shutdown potentially close to ending,” said Bitcoin trader Daan Crypto Trades on X. He noted that liquidity would likely return alongside the release of delayed economic data such as the Consumer Price Index (CPI).
Traders target key liquidity zones amid renewed optimism
Market analysts are closely watching Bitcoin’s next technical moves as the cryptocurrency approaches major resistance levels.
According to AlphaBTC, Bitcoin is currently “back testing the broken year-long trendline,” with an important target zone between $110,000 and $112,000.
The Chart shared by the analyst highlight that the bulk of the liquidity now sits between $111,500 and $115,000. If Bitcoin breaks above $115,000, it could trigger a liquidation squeeze, forcing short sellers to close positions and pushing prices toward the next liquidity cluster near $117,000.
“$110K–$112K is the area to watch if Bitcoin can push through $107K resistance,” AlphaBTC stated.
The area above early November’s consolidation, around $112,000, remains the “obvious area to target,” with some projections putting end-of-year targets between $180,722 and $221,485.
The last comparable event occurred in Trump’s first term when the US government shutdown ended on January 25, 2019.
Following that, Bitcoin surged by over 265%, climbing from $3,550 to $13,000 within five months.
Traders are drawing parallels, suggesting the current market setup could echo that historical trend if liquidity improves as expected.