Bitcoin Surges Past $106K as U.S. Shutdown Resolution Fuels Risk-On Rally

Washington's gridlock breaks—and crypto bulls charge. Bitcoin reclaims the $106K throne as political progress sends traders scrambling back into risk assets.

Wall Street's 'safe haven' narrative takes a hit while digital gold flexes. Traders now betting the shutdown truce unlocks fiscal stimulus taps—just in time for the halving pump.

Meanwhile, traditional markets yawn at 2% yields. Guess which asset class actually compensates for inflation?

Technical support and derivatives data show mixed picture

The rally came after a rough stretch in October when Bitcoin dropped from a record high above $126,000 to just under $100,000, as Leveraged trades got wiped out and long-time holders took profits.

But Nikolaos Panigirtzoglou, a managing director at JPMorgan, said in a recent note that the worst of that pullback is now in the rearview. “The deleveraging episode is largely behind us,” Nikolaos wrote, adding that bitcoin could rally toward $170,000 over the next 6 to 12 months.

The Relative Strength Index (RSI) bounced from under 30, suggesting that heavy selling may have cooled. A slight improvement in cumulative volume delta also shows sellers are getting quieter and buyers are stepping back in. Spot market activity is still running high, hinting that interest remains strong, especially if Bitcoin can push above $111,000 toward $116,000, a resistance zone traders are watching closely.

In derivatives, Bitcoin open interest is still slowly dropping, while options markets are still defensive, with many traders holding downside protection, but the shrinking volatility spread hints that fear is fading.

On-chain data looks better: transfer volumes are rising, address activity is stable, and transaction fees remain steady, all signs of a functioning network, according to Glassnode.

Profitability still looks rough. Short-term holders are DEEP in the red, with unrealized losses rising. But these conditions often come before accumulation phases, when stronger investors buy up supply from weaker hands. Right now, Bitcoin is hovering in a range between $100K and $108K, and that zone could become a new support base, even as the broader profitability downtrend continues to weigh on sentiment.

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