Bitcoin slipped back toward $85,600 after failing once again to hold above $87,000, a resistance level that has stopped the cryptocurrency’s advance three times since Sept. 23. The setback came while U.S. stocks remained strong and Treasury yields continued to rise.
BTC was trading around $85,600 during Tuesday’s Asian session, down 1.2%, after reaching slightly above $87,000 on Monday before sellers forced it lower. It was the third failed attempt to break through the $87,000 area since Sept. 23.
Most major cryptocurrencies also moved lower. HYPE was an exception, rising 3% to roughly $94. BNB dropped 2.5%, making it the weakest performer among the major tokens. Ether, XRP, SOL and DOGE each lost between 1% and 2%, while ZEC and TRX remained broadly unchanged, according to CoinDesk data.
Several other tokens posted stronger gains. ADA surged 11%, GRT climbed 7% and NEAR gained nearly 7%.
FxPro analyst Alex Kuptsikevich said bitcoin has been establishing “a trend of higher local lows” since the beginning of last week, although buyers have not been able to generate enough momentum to push the market decisively higher.
The cryptocurrency is now approaching the narrowing point of a triangle formation, Kuptsikevich said. The pattern is defined by horizontal resistance above and rising support below, meaning a breakout in either direction could produce a sharp increase in volatility.
Total cryptocurrency market capitalization declined to approximately $2.93 trillion, slipping below the $2.95 trillion resistance level tracked by FxPro. The weakness occurred even as the U.S. dollar strengthened and equity indexes remained resilient.
Equities Outperform Crypto
The stock market continued to show greater strength. The Nasdaq 100 ended at a record high, while the S&P 500 finished less than 0.5% below its all-time peak. MSCI’s Asia Pacific gauge added 0.1%.
U.S. government bonds, meanwhile, extended their decline. The 10-year Treasury yield increased by one basis point to 5.32%, around its highest level since 2002. The two-year yield rose two basis points to 4.83%.
Investor and billionaire Ray Dalio also warned that reduced Treasury demand from China and Japan could leave the U.S. government bond market exposed to a pullback.
$87K Remains the Key Test
Bitcoin’s repeated inability to break $87,000 has kept the level firmly in focus. Each approach has triggered renewed selling, preventing the cryptocurrency from establishing a sustained move above the resistance.
For bitcoin to move higher, buyers will need to absorb the supply appearing near $87,000 and keep the price above that threshold. A successful breakout would signal that sellers at the level are losing control and potentially create room for bitcoin to reach its highest prices in eight months.
