BTC attempts to maintain upward momentum while US Treasury yields retreat from 24-year peaks
BTC traded near the $84,000 level following a significant pullback in US Treasury yields shortly after markets opened on Thursday.
Bitcoin (BTC) climbed past the $84,000 threshold at the opening bell of Thursday's Wall Street trading session while US Treasury yields pulled back following the establishment of fresh multidecade peaks.
Key points:
- BTC's price movement attempts to establish a pattern of elevated lows during the initial October trading day in the US, with attention centered on $84,000.
- US Treasury yields decline as Wall Street opens trading after the 10-year note reached its highest point since April 2002 at 5.342%.
- A "messy" retest of the $82,500 level is anticipated for Bitcoin, according to analyst Rekt Capital.
US Treasury yields move lower following recent macro peaks
Information from TradingView indicated BTC/USD maintaining a sequence of ascending lows on charts displaying hourly intervals, registering a 0.6% increase for the day.
The 30-year and 10-year US Treasury yields both established new macro peaks, with the 10-year note touching 5.342% — a threshold not witnessed since April 2002 — before declining to 5.251% as of press time.
When addressing the factors driving the current bond-market selloff, Mahmood Pradhan, who previously served as deputy director of the European department at the International Monetary Fund, shared with the New York Times that global markets were exhibiting significant "nervousness" regarding escalating public debt, with climbing yields pushing up the interest expenses of governments.
"The Middle East war has really turned everything around," he said, with higher oil prices already showing up in inflation data.
As previously covered by Cointelegraph, the August measurement of the US Personal Consumption Expenditures (PCE) index, which serves as the Federal Reserve's favored inflation metric, registered below market forecasts at 3.4% year on year. The softer reading, however, generated minimal market response, with analysts pointing to much of the decrease being attributable to a modification in the PCE calculation methodology.
"Yields have gone up rapidly since the market became concerned that the Fed was no longer taking inflation seriously," crypto analyst Benjamin Cowen told X followers, adding:
"Well the bond market has revolted, and until the Fed gets a proper handle on inflation, this will likely continue."
Market analysis: Bitcoin support level retest "could get messy"
Bitcoin's trading activity occurred within areas of increasing liquidity density on exchange order books positioned both above and beneath the current spot price. Information from CoinGlass identified $84,500 and $82,900 as critical zones of concentration at the time of writing, with both levels potentially serving as magnetic forces for price movement.
Total liquidations across the preceding 24-hour period amounted to $25 million as proximate long and short positions contributed to maintaining range-bound market conditions.
In his evaluation of the prevailing market configuration, trader and analyst Rekt Capital projected another decline toward critical support positioned around $82,500.
"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," he wrote on X.
In earlier commentary, Rekt Capital indicated that the capacity of bulls to defend $82,500 as a support level would determine the trajectory of Bitcoin's wider recovery.
