Bitcoin Struggles Near $85,000 as Key Support Levels Loom

Bitcoin (BTC) retreated towards $85,000 on Tuesday after another failed attempt to surpass the $87,000 resistance level. The cryptocurrency has been stuck near $85,500 since October 6, as sellers repeatedly reject higher prices. While weaker US employment data has reduced expectations of further Federal Reserve rate hikes, this has not been enough to drive Bitcoin decisively above $87,000.

The 10-year Treasury yield remains around 5.3%, competing with Bitcoin's appeal despite easing rate expectations. Analysts note that Bitcoin is nearing the apex of a triangle pattern, formed by horizontal resistance and rising support, which could lead to a sharper move once the structure breaks. Key support levels include $83,000 to $82,000, where buyers must defend to maintain the current recovery.

Despite repeated failures at $87,000, institutional demand for Bitcoin remains strong. US spot Bitcoin ETFs attracted $2.65 billion in September, with an additional $134 million in early October. However, analysts emphasize that a sustained close above $87,400 is needed to confirm a breakout, with potential upside targets at $90,000 and $93,000 if macro conditions improve.

Traders should avoid treating every dip towards $85,000 as a sell signal. The bearish case strengthens only if demand fails to defend the $82,000 support level. Conversely, a break above $87,400 would alleviate bearish pressure and bring higher targets back into focus.