Bitcoin Fails to Break Resistance Near Eight-Month High

Bitcoin approached its eight-month high on Monday, reaching $86,950 during Asian trading hours before retreating below $86,000. The cryptocurrency still managed a 1.3% gain over 24 hours. Dogecoin led the altcoin rally with a 3% increase, while XRP, BNB, and Zcash saw modest gains of 1% to 2%. The broader market environment supported risk assets, with softer U.S. jobs data reducing pressure on the Federal Reserve to raise interest rates further. The Nasdaq 100 hit a record high on Friday, and global equities extended their gains.

The reversal in Bitcoin's price marked the second time in a week that buying pressure stalled near the late-September high of $87,400. Analysts are watching closely to see if Bitcoin can break through the resistance zone, with a daily close above $87,000 seen as a potential signal for a push toward $90,000. Institutional demand remains strong, with U.S. spot Bitcoin ETFs attracting $6.34 billion in the third quarter, including $2.65 billion in September.

However, the macroeconomic backdrop presents challenges. While the weaker jobs report eased concerns about Fed rate hikes, the 10-year Treasury yield remains near multi-decade highs at 5.25%. This elevated yield environment raises the opportunity cost of holding Bitcoin, creating tension between dovish rate expectations and the allure of fixed-income returns. Short-term traders are focused on whether Bitcoin can hold above $85,000 and attempt another breakout past the $87,000 resistance level.