Bitcoin (BTC) experienced a notable rebound during Monday’s Asian session, climbing 5% to surpass $106,000. This bullish move responds to growing optimism among traders. They expect the prolonged U.S. government shutdown to end this very week. This positive sentiment has refocused the market’s attention. Now, Bitcoin sell liquidity at $112,000 is emerging as the primary target for bulls, according to data from CoinGlass.
Data from TradingView and Markets Pro showed the BTC/USD pair trading at $106,438 on Bitstamp. The momentum began on Sunday. President Donald Trump announced a $2,000 “dividend” for most Americans, funded by tariff revenue, which sparked a rebound. However, the main news is the bipartisan deal in the U.S. Senate to end the longest government shutdown in the country’s history, which has now lasted 40 days.
The reaction in prediction markets was immediate. On Polymarket, the odds of the shutdown ending between November 12 and 15 soared to 85%. Just 24 hours earlier, that probability was 63%. Meanwhile, the Kalshi platform estimates a 90% probability that the government will reopen on Friday. The significance of this event lies in the release of billions in cash from the Treasury. This liquidity injection typically boosts risk assets, such as Bitcoin.
Will Bitcoin repeat the parabolic feat of 2019?
Analysts are closely watching the historical context. The last major government shutdown occurred between late 2018 and January 2019. As analyst Vivek Sen recalled, Bitcoin initiated a parabolic move after that shutdown ended. The cryptocurrency surged over 265% in the following five months, rising from $3,550 to $13,000. Trader Daan Crypto Trades noted it will be an “interesting week.” He expects a “boost back in liquidity” and the release of key economic data like CPI, which has also been delayed.
Technically, the Bitcoin sell liquidity at $112,000 is the magnet for the price. Data from CoinGlass reveals that while the price has already absorbed liquidity at $106,000, the largest cluster of sell interest (asks) is located above $112,000. Analyst AlphaBTC indicated this is the “obvious area to target.” The liquidity is clustered between $111,500 and $115,000.
If the momentum manages to break the $115,000 barrier, it could trigger a massive liquidation of short positions (a short squeeze). This would force sellers to buy back to cover their positions. Such a scenario would propel the price toward the next major liquidity cluster, located near $117,000. For now, AlphaBTC identifies the $110,000-$112,000 zone as the area to watch, provided Bitcoin can consolidate above the $107,000 resistance.
