Bitcoin Struggles at $87,000 Resistance as Stocks Hit Records

Bitcoin faced another rejection near $87,000 on Tuesday, dropping 1.2% to $85,600 during Asian trading hours. This marks the third time since September 23 that the cryptocurrency has failed to break past this resistance level. Other major cryptocurrencies also saw declines, with BNB falling 2.5% and ether, XRP, SOL, and DOGE each losing between 1% and 2%. However, HYPE bucked the trend with a 3% gain, while smaller tokens like ADA surged 11%, GRT rose 7%, and NEAR climbed nearly 7%.

Analyst Alex Kuptsikevich of FxPro noted that Bitcoin has been forming a pattern of higher local lows since the start of last week, but bulls have struggled to sustain momentum. He highlighted that the price is approaching the apex of a triangle formed by horizontal resistance and rising support, suggesting increased volatility if the price breaks out of this pattern.

Despite the crypto market's struggles, traditional stocks remained strong. The Nasdaq 100 closed at a record high, the S&P 500 finished within 0.5% of its all-time high, and MSCI's Asia Pacific gauge rose 0.1%. Bonds continued to slide, with the 10-year Treasury yield rising to 5.32% and the 2-year yield climbing to 4.83%. Billionaire Ray Dalio warned that the Treasury market could face a pullback in demand from China and Japan.

The total crypto market cap slipped to about $2.93 trillion, just under the $2.95 trillion resistance level identified by FxPro. For Bitcoin to surpass $87,000, buyers need to absorb the selling pressure and hold the price above this level, indicating that the selling at this price has dried up.