Bitcoin moved back above $84,000 around Thursday’s Wall Street open as US Treasury yields pulled lower after setting fresh multidecade highs.
According to TradingView data cited by Cointelegraph, BTC/USD kept a higher-low pattern intact on hourly time frames and was up 0.6% on the day. With the first US trading session of October underway, the $84,000 area remained the immediate focal point for price action.
Treasury yields retreat after setting new macro highs
US 30-year and 10-year Treasury yields both printed new macro highs. The 10-year yield climbed to 5.342%, a level last seen in April 2002, before falling back to 5.251% at the time of writing.
On the forces behind the ongoing sell-off in the bond market, Mahmood Pradhan, former deputy director of the European department at the International Monetary Fund, told The New York Times that markets around the world were "very nervous" about mounting public debt. He said rising yields were also increasing interest costs for governments.
"The Middle East war has really turned everything around," he said, adding that higher oil prices were already showing up in inflation data.
Cointelegraph noted that the August reading of the US Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation gauge, came in below expectations at 3.4% year over year. Even so, markets showed little reaction to the softer print, with analysts attributing much of the drop to a change in how PCE was calculated.
Crypto analyst Benjamin Cowen wrote on X: "Yields have gone up rapidly since the market became concerned that the Fed was no longer taking inflation seriously."
Analysts watch a possible retest of $82,500 support
On exchange order books, liquidity was building on both sides of the spot price. CoinGlass data showed $84,500 and $82,900 as the key nearby areas at the time of writing, with both levels potentially acting as price magnets.
Total liquidations over the past 24 hours reached $25 million. Nearby long and short liquidations helped keep Bitcoin inside a range.
Trader and analyst Rekt Capital said the current setup could still produce a fresh move down to major support near $82,500.
He wrote on X: "A successful retest there could set up the next trend continuation. History suggests this retest could get messy but let’s take it one level at a time and not look too far ahead."
Rekt Capital had previously said that whether bulls can hold $82,500 as support will decide Bitcoin’s broader rebound.