Bitcoin has shown resilience, bouncing back from its recent decline amid political turbulence in the United States.
The cryptocurrency leader experienced a strong recovery after enduring over a week of significant losses. Initially, Bitcoin fell from $117,968 on September 18 and continued its descent until it dipped below $110,000, reaching a low of $108,676 by Friday, September 26. This marked one of Bitcoin’s most challenging periods in recent months.
However, on September 28, Bitcoin began to recover swiftly. It surged past the $110,000 mark and continued upward through $111,000 and $112,000 almost seamlessly. By September 30th it encountered resistance at $114K but managed to climb higher today reaching back up to the level around$117K trading approximately at$117180 currently indicating an increase of7.83% since last Friday’s lowest point
This financial rebound coincides with political gridlock as Republicans & Democrats failed to agree upon funding necessary for maintaining federal operations until late November. Despite holding majority control within Congress Republicans couldn’t secure Senate votes needed advancing their proposed bill forward
The main sticking points included disagreements over Affordable Care Act funding along with extending tax credits related health insurance which resulted shutdowns affecting government services halting federal employee salaries temporarily
Bitcoin Positioned Decisively
The ongoing political situation has also positively impacted gold prices significantly rising five consecutive days achieving new record highs peaking briefly at3895 before slightly retreating towards3875 today Gold typically performs well during governmental shutdowns whereas historically Bitcoins performance remains mixed under similar circumstances
During previous extended shutdown period spanning December2018 January2019 initially saw gains followed by declines dropping from3843 down3511 once standoff persisted This historical context raises questions regarding whether current gains can be sustained should present-day impasse continue dragging out further
Ted Pillows market analyst noted that presently bitcoin is situated between two major liquidity zones One zone ranges107k-108k containing approximately8 billion long positions potentially facing liquidation risk if price falls Another zone lies higher118k-119k where roughly7 billion short positions could become vulnerable should prices rise It remains uncertain whether buyers will push prices upwards triggering short liquidations or sellers pull them downward impacting longs instead