Bitcoin slipped today, retreating from a record high as the U.S. government shutdown entered its seventh day. Bitcoin edged down to the $121,000 range, and remains below Monday’s all-time peak of $126,296, per Bitbio data.
Despite the minor pullback, Bitcoin has surged roughly 30% since the start of the year and is up about 9% over the past week.
Gold, meanwhile, continued its historic rally, briefly topping $4,000 per ounce overnight, with futures trading at $3,980 early Tuesday, reflecting a 50% gain for the year.
At the time of writing, bitcoin is trading at $122,096.
Markets appear largely unfazed by the shutdown, even after the Senate failed to pass a Republican bill on Monday to reopen government operations.
Bitcoin dips are for buying
Analysts say Bitcoin’s recent correction — from its all-time high down to around $122,000 — is healthy and may be setting the stage for further gains. The $120,000 level currently acts as key support, while resistance is seen near $135,000.
“Overall, dips are for buying,” said market analyst Mags on X, noting that a daily close above $123,300 could trigger additional upside.
Onchain data underscores strong buying momentum. Glassnode reports that Bitcoin’s relative strength index has risen from 44 to 66 over the past week, signaling growing market confidence.
Glassnode also noted that bitcoin futures open interest surged as traders added longs during the breakout to new highs. The current pullback is testing these positions, and watching where buyers step in will reveal if support levels can attract renewed demand.
The ongoing U.S. fiscal impasse may be further fueling demand for perceived safe-haven assets.
Geoffrey Kendrick, head of digital assets at Standard Chartered, suggested last week that Bitcoin could reach $135,000 soon and possibly $200,000 by year-end if current conditions persist.
As mentioned earlier, gold continues its surge, supported by central bank purchases, dollar weakness, and expectations of future Fed easing.
Investors appear to be positioning for an extended period of policy uncertainty, with both bitcoin and traditional safe havens benefiting from market jitters.
Source: https://bitcoinmagazine.com/markets/bitcoin-price-pulls-back-from-highs
