Bitcoin failed to make another push toward $85,000 after the Tuesday Wall Street open, giving back recent gains as US Treasury yields continued to climb to multidecade highs. BTC had reached $84,450 before the short-term rebound faded, sending price back below $83,000.
At the same time, US bond yields kept rising, while gold tried to recover after a 3.6% drop to $4,115 per ounce.
Bitcoin stalls near $85,000 as Treasury yields keep climbing
Data from TradingView showed BTC/USD rallying locally to $84,540 before momentum stalled as the US trading session began. The pair then slipped back below its daily opening level near $83,600.
US bond markets showed little sign of easing during the session. The 30-year Treasury yield rose above 5.60% to a fresh 24-year high, while the 10-year yield hit 5.26%, putting it close to moving past its June 2007 high and into territory last seen in April 2002.
According to the report, geopolitical uncertainty tied to the US-Iran war, elevated oil prices and persistent inflation kept investors cautious. Higher yields also weighed on precious metals. Gold fell 3.6% on Monday to $4,115 per ounce before rebounding to $4,166 at the time of writing.
The Kobeissi Letter called the move in gold "highly unusual" in a post on X. It wrote: "The surge in yields is creating an extraordinary disruption across the precious metals market."
With US equities avoiding major volatility, fresh analysis from Mosaic Asset Company said the market could still see renewed upside from what it described as "extremely oversold" conditions.
The firm wrote on Tuesday: "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."
Mosaic added that solid economic data, including stronger-than-expected job gains in August, could support further gains in stocks even as the Federal Reserve continues to raise rates. As Cointelegraph previously reported, markets expect the Fed to raise rates by 0.25% at its October meeting.
Long-term holder supply strengthens overhead resistance
On lower time frames, Bitcoin remained sensitive to shifts in exchange order-book liquidity.
Data from CoinGlass showed resistance thickening around $85,000 on Tuesday, with price pulling back again in a pattern similar to the start of the week.
Glassnode said coins held by long-term holders, defined here as wallets holding a UTXO for at least six months without selling, were clustered around $85,000. That concentration increases the likelihood of profit-taking if Bitcoin tries to break above the level.
In its post on X, Glassnode wrote: "$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."
Between exchange sell-side liquidity and the onchain concentration of long-term holder supply, the $85,000 area remains the key overhead level Bitcoin has yet to clear.