Bitcoin ($BTC) reversed its latest gains after Tuesday’s Wall Street open as US bond yields continued to set multidecade highs.
Key points:
- Bitcoin abandoned a low-time frame rebound after reaching $84,450, dipping back below $83,000.
- US bond yields set new multidecade highs on Tuesday as gold sought to recover from a 3.6% drop to $4,115 per ounce.
- Ask liquidity continued to cement itself above the spot price around $85,000 on exchange order books.
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Data from TradingView showed a local rally to $84,540 stalling as the US trading session began, with $BTC/USD retreating below its daily opening level near $83,600.
$BTC/USD one-hour chart. Source: Cointelegraph/TradingView
US bond markets showed no sign of cooling on the day, with the 30-year yield reaching new 24-year highs above 5.60% and the 10-year yield hitting 5.26%, on the cusp of passing its June 2007 high to levels last seen in April 2002.
US 10-year bond yield one-month chart. Source: Cointelegraph/TradingView
Geopolitical uncertainty surrounding the US-Iran war, high oil prices and persistent inflation kept investors cautious, while surging bond yields also sent precious metals lower. Gold fell 3.6% on Monday to $4,115 per ounce before rebounding to $4,166 at the time of writing.
Market commentator The Kobeissi Letter described gold’s move as “highly unusual.”
“The surge in yields is creating an extraordinary disruption across the precious metals market,” it wrote in a post on X.
XAU/USD one-day chart. Source: Cointelegraph/TradingView
As US equities avoided major volatility, new analysis from trading resource Mosaic Asset Company saw the potential for renewed upside amid “extremely oversold” conditions.
“On a year-to-date basis, the percent of stocks trading in short-term uptrends has only been this low back in late March when the S&P fell near correction territory. Many other measures of breadth show the presence of an oversold condition while investor sentiment has seen a large jump in bearish views over the past two weeks,” it wrote on Tuesday.
Mosaic added that robust economic data, including higher-than-expected job gains in August, could support further stock gains even as the Federal Reserve raises interest rates. As Cointelegraph reported, markets expect the Fed to hike rates by 0.25% at its October meeting.
Long-term holder supply reinforces overhead resistance
On low time frames, Bitcoin remained under the influence of exchange order-book liquidity shifts.
Data from CoinGlass showed overhead resistance thickening at $85,000 on the day, with price dropping as a result — a repeat of behavior seen at the start of the week.
$BTC liquidation heatmap. Source: CoinGlass
Onchain analytics platform Glassnode added that coins held by long-term holders (LTHs) — wallets holding a UTXO for at least six months without selling — were clustered around $85,000, increasing the likelihood of profit-taking if Bitcoin attempts to break above that level.
“$BTC has stalled under its heaviest supply cluster. More long-term holder coins sit at 84k–85k than at any other price on the chart. Price needs to break through and hold above this level for the rally to continue,” it told X followers.
Bitcoin LTH supply data. Source: Glassnode on X.com