Bitcoin failed to sustain its latest recovery on Tuesday as selling pressure around the $85,000 level prevented the cryptocurrency from extending its gains.
BTC briefly climbed to around $84,540 before falling back below $83,000 during the US trading session. The retreat came as US Treasury yields continued to rise, putting pressure on risk assets including stocks, gold and cryptocurrencies.
The US 30-year Treasury yield rose above 5.60%, reaching a new 24-year high, while the 10-year yield climbed to 5.26%. Higher yields have contributed to cautious investor sentiment amid concerns over inflation, oil prices and geopolitical uncertainty.
Bitcoin also faced strong resistance from exchange order books, with significant sell-side liquidity concentrated around $85,000. Data from CoinGlass showed that this overhead liquidity continued to limit Bitcoin’s upward move.
Glassnode said long-term holder supply was also heavily concentrated between $84,000 and $85,000. The analytics firm noted that Bitcoin may need to break and hold above this area to support a further rally.
With bond yields remaining elevated and selling pressure near $85,000, Bitcoin continued to trade below the key resistance level as markets watched for the next major price move.
