Bitcoin Dips Below $87,000 as Traders Eye Key Support Levels
Bitcoin climbed to just over $86,000 early Tuesday, marking a slight 0.2% dip over the past 24 hours. The cryptocurrency had peaked above $87,000 on Monday, only to face significant selling pressure for the third time since September 23. ZEC led the gains among major cryptocurrencies, rising nearly 2% to around $1,360, while DOGE fell nearly 2%. SOL dropped 1%, and ether, XRP, and BNB each saw minor declines of less than 1%.
According to FxPro, Bitcoin briefly dipped to $85,200 before European trading began. The asset has remained near the upper end of its two-week trading range. FxPro noted that the recent pattern of higher lows, which started the previous week, is now at risk of breaking. A drop below $84,000 would signal a shift in favor of the bears, potentially pushing Bitcoin toward $80,000 if it falls further below the recent low near $83,000.
On the economic front, U.S. Treasury yields retreated from their highest levels since 2002 as oil prices slipped below $100 a barrel. Treasury Secretary Scott Bessent suggested that economic growth and spending restraint would soon slow government borrowing. This development eased concerns tied to inflation fears stemming from the U.S.-Iran conflict and expectations of continued Federal Reserve tightening. The minutes from the Fed's last meeting are scheduled for release on Wednesday.