Bitcoin (BTC) Recovers Past $105K as Shutdown Relief and Whale Buying Fuel Bullish Reversal

Bitcoin surged past $105,000 on Monday, extending gains to trade near $106,000 as optimism over the U.S. government’s shutdown resolution revived risk appetite across global markets.

Reports of a Senate breakthrough to fund key departments and reopen government operations triggered a wave of investor confidence after the 40-day standoff, the longest in U.S. history.

Shutdown Breakthrough Sparks Crypto Relief Rally

The U.S. Senate decision marked Bitcoin’s strongest rebound in nearly a week, lifting the broader crypto market’s capitalization to $3.58 trillion, up 4.8% in 24 hours. Ethereum rose 6.9% to $3,618, while XRP, Solana, Dogecoin, and Cardano each gained more than 4%, signaling renewed bullish sentiment.

Analysts noted that the end of the shutdown could restore liquidity and encourage institutional inflows, particularly after eight sessions of ETF outflows totaling more than $2 billion.

“Relief in Washington has translated into relief on the charts,” said market analyst Abhay H., who projects short-term upside targets between $108,000 and $110,000 if momentum holds above $105,000.

On-chain data revealed that Bitcoin whales, addresses holding between 10,000 and 100,000 BTC, accumulated more than 300,000 BTC worth approximately $32 billion after prices briefly dipped below $101,000. This large-scale accumulation helped reinforce the $105,000 support zone, offsetting broader market weakness.

The Realized Profit/Loss ratio remains elevated at 9.1, suggesting holders are still comfortably in profit despite volatility. Analysts believe the buying spree demonstrates “deep conviction” among long-term investors.

“Whales have effectively turned $105K into the new line in the sand,” said Glassnode researchers, adding that structural demand remains robust even amid reduced ETF inflows.

Technical signals back this trend. Bitcoin continues to defend its 365-day moving average, a key historical support that also held during the 2024 yen-carry crisis and the 2025 tariff shock.

While momentum indicators show Bitcoin entering neutral territory, traders are now eyeing $111,000 and $113,000 as the next resistance levels. A clear break above that range could open the path toward the 138.2% Fibonacci extension target near $133,900.

Market sentiment has further been buoyed by speculation that MicroStrategy founder Michael Saylor may be preparing another major Bitcoin purchase following his cryptic “₿est Continue” post.

Combined with expectations of potential Fed rate cuts before 2026, these catalysts are helping reinforce Bitcoin’s recovery narrative heading into year-end. Currently, Bitcoin (BTC) trades at $106,448, up 4.3% over 24 hours, signaling that the bulls may indeed be back in control.

Cover image from ChatGPT, BTCUSD chart from Tradingview