Bitcoin turned back at $87,000 for the third time
Bitcoin slipped about 1.2% to roughly $85,600 early Tuesday after sellers again turned it back from $87,000, its third failed attempt at that level in two weeks. Stock indexes remain near record highs, while rising bond yields weigh on riskier investments. Analysts expect a sharp move once the price breaks out of its narrowing range.
Bitcoin keeps hitting the same ceiling. The world's largest cryptocurrency, by market value, fell about 1.2% to roughly $85,600 during Asian trading hours Tuesday, CoinDesk reported. On Monday, it briefly rose just above $87,000 before sellers pushed it back down.
That was the third time since Sept. 23 that $87,000 has stopped a rally. Bitcoin.com News reported that the coin traded between $85,800 and $86,000 on Monday morning, with resistance stretching from the upper $86,000s to about $87,400.
Bitcoin has not lost its broader gains: it has recovered from a low near $74,900, according to Bitcoin.com News, and its price sits above almost every major moving average that traders watch, although momentum indicators have weakened.
Bitcoin has formed "a trend of higher local lows" since the start of last week, "but the bulls have been unable to gain momentum," FxPro analyst Alex Kuptsikevich told CoinDesk. He said the price is near the tip of a triangle pattern on the charts. "We should therefore be prepared for increased volatility should the price break out of this pattern," he said.
The rest of the crypto market also slipped, to about $2.93 trillion in total value. Ether, XRP, solana and dogecoin each fell 1% to 2%. Cardano's ADA bucked the trend with an 11% jump.
The mood in cryptocurrency contrasts with the stock market, where the Nasdaq 100 closed at a record Monday, and the S&P 500 ended within 0.5% of its high, CoinDesk said.
Bonds remain the trouble spot, with the 10-year Treasury yield rising to 5.32%, around levels last seen in 2002. Billionaire investor Ray Dalio also warned that the Treasury market could suffer if China and Japan cut back their buying, CoinDesk reported.
What traders are watching: A sustained move above $87,400 would open the way toward $88,000 and above, Bitcoin.com News said. A drop below $85,000 would point to $84,000 or lower.
Clearing $87,000 would push bitcoin to its highest prices in eight months, CoinDesk noted.
What we know: Bitcoin has failed at $87,000 three times in two weeks.
What we don't: Which way it breaks, and whether Wednesday's Fed minutes tip the balance.
Where outlets agree CoinDesk and Bitcoin.com News both report bitcoin stalling just below $87,000, near $86,000, as sellers keep turning it back.
Where they differ Bitcoin.com News says the longer-term trend still favors buyers, while FxPro's analyst told CoinDesk that buyers have been unable to gain momentum.