Bitcoin (BTC) has surged beyond $120,000, reaching levels not witnessed since mid-August, as cryptocurrency traders anticipate a bullish October rally for risk assets. The leading cryptocurrency has demonstrated consistent growth over the past five trading sessions, rebounding strongly from September's market correction.
Market analysts highlight renewed optimism regarding macroeconomic catalysts that could propel risk assets during the final quarter. BTC futures markets are displaying exceptionally bullish signals, with open interest achieving a historic peak of $32.6 billion, indicating substantial trader positioning for continued upward momentum.
Prominent on-chain analyst Skew observed significant accumulation of short positions, potentially setting the stage for a substantial short squeeze scenario. Market participants are closely monitoring the upcoming Federal Reserve meeting, though the ongoing government shutdown might delay crucial economic data releases.
Crypto market enthusiasm is further bolstered by anticipation surrounding potential altcoin ETF approvals once government operations resume. The CoinDesk 20 Index registered a 1.5% increase, while major altcoins including Dogecoin (DOGE) showed positive momentum with nearly 3% gains.
Paul Howard, Senior Director at Wincent trading firm, confirmed his bullish outlook, noting: "With BTC reclaiming mid-July price levels and total market capitalization exceeding $4 trillion, we're observing sustained momentum above $115,000 with solid support at $110,000. We anticipate maintained upward trajectory beyond $120,000 in coming weeks."