Bitcoin Rejected at $87,000 Again as Volatility Builds

Bitcoin (BTC) dropped 1.2% to around $85,600 early Tuesday after sellers rejected the cryptocurrency at the $87,000 mark for the third time since September 23. The latest rejection came after Bitcoin briefly reached $86,969 on Sunday before falling back below $85,500. Two subsequent attempts to breach $87,000 failed, with the last one ending in a sharp decline from $86,615 to $85,503 within 20 minutes. The volatility wiped out over $109 million in leveraged Bitcoin positions, with short sellers losing $62 million compared to $47 million for long traders.

Analyst Alex Kuptsikevich from FxPro warned that Bitcoin is nearing the apex of a triangle pattern, which could lead to sharper price swings. He noted that while buyers have maintained higher local lows since last week, they lack the momentum to push the price higher. Glassnode reported that upward momentum has moderated, and profit-taking remains significant, though no immediate trend reversal is expected. Trading firm QCP Capital attributed the limited gains to high oil prices and long-dated bond yields, which are constraining risk assets.

Meanwhile, traditional markets showed strength, with the Nasdaq 100 closing at a record on Monday. The 10-year Treasury yield climbed to 5.32%, a level not seen since 2002. Minutes from the Federal Reserve's September meeting are scheduled for release on Wednesday, which could influence market sentiment. Bitcoin first returned to $87,000 in September after an eight-month absence, but each attempt to surpass this level has been met with selling pressure.