Bitcoin Stalls at $85K as Rising Yields and Economic Reports Weigh on Market

Bitcoin's recent rally has stalled around $85,400, with buyers unable to break above this key resistance level. Despite remaining firmly above its major moving averages, the short-term environment for BTC has become increasingly challenging.

The surge in US Treasury yields is putting pressure on risk assets, and investors are reducing exposure ahead of several potentially market-moving US economic reports. The five-year Treasury yield has climbed above 5%, while the benchmark 10-year yield has moved beyond 5.2%, reaching its highest level in roughly 19 years.

According to a report from K33 Research, Bitcoin recently absorbed a significant derivatives deleveraging event without experiencing the type of sharp decline that often accompanies large-scale liquidations. However, this does not necessarily mean buyers retain an advantage, as spot trading volumes remain below their yearly averages.