Bitcoin Rally Faces Fresh Tests as Momentum Wanes Above $87,000

Bitcoin's recent rally above $87,000 is facing fresh tests as it slipped towards $85,000 on Tuesday. The move came after a sharp rebound from last week's low near $75,000, when BTC fell below its September trading range.

The recovery followed a period of weakness in September, where Bitcoin had spent much of the month between roughly $77,100 and $81,300 before breaking lower. The market then reversed sharply on September 18 with strong buying and ETF inflows pushing prices higher, gaining 5.9% that day.

Spot buying drove much of the recent move towards $87,000, but several indicators linked to sustained rallies remain weak. Trading volume has yet to show strong follow-through, while open interest remains relatively subdued.