Bitcoin slipped back below $83,000 after a short-lived push toward $85,000, as long-term holder supply reinforced overhead resistance and US bond yields climbed to multidecade highs. Gold fell 3.6% before paring losses, while trading resource Mosaic Asset Company pointed to extremely oversold conditions in equities.
Bitcoin (BTC) reversed course after Tuesday's Wall Street open, retreating from a session high of $84,450 to trade back below $83,000 as US bond yields set fresh multidecade highs.
Data from TradingView showed the rally stalling at $84,540 as the US trading session began, with BTC/USD pulling back below its daily opening level near $83,600.
Bond yields squeeze gold and equities
US bond markets showed no sign of cooling, as the 30-year yield reached new 24-year highs above 5.60% and the 10-year yield hit 5.26%, on the cusp of levels last seen in April 2002. Geopolitical uncertainty around the US-Iran war, high oil prices, and persistent inflation kept investors cautious, and the surging yields also pushed precious metals lower.
Gold fell 3.6% to $4,115 per ounce before rebounding to $4,166.
Market commentator The Kobeissi Letter described the move as highly unusual, writing in a post on X: "The surge in yields is creating an extraordinary disruption across the precious metals market."
Long-term holder supply reinforces resistance near $85,000
Onchain analytics platform Glassnode said coins held by long-term holders — wallets that haven't moved bitcoin in at least six months — are clustered around $85,000, raising the chance of profit-taking if bitcoin breaks above that level.
Data from CoinGlass showed overhead resistance thickening at $85,000 during the day, a repeat of behavior seen at the start of the week, as price dropped in response.
Oversold equities could still extend gains
Trading resource Mosaic Asset Company pointed to extremely oversold conditions in equities as a reason stocks could see renewed upside. Mosaic noted that the share of stocks trading in short-term uptrends has only been this low since late March, when the S&P fell near correction territory.
Mosaic added that stronger-than-expected job gains in August could keep supporting stocks even as the Federal Reserve raises interest rates. Markets currently expect the Fed to hike rates by 0.25% at its October meeting.
Source: Cointelegraph.com News
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