Bitcoin Stumbles at $87,000 Resistance for Third Time
Bitcoin's latest push to break through the $87,000 resistance level faltered for the third time in recent weeks, as sellers defended the key barrier. The largest digital asset slipped 1.2% on Tuesday, trading near $85,600 after failing to sustain momentum above $87,000. The price briefly topped that level on Monday before a sharp sell-off dragged it back below $85,500 within minutes. Two subsequent attempts to reclaim the resistance also lost steam, leaving Bitcoin trapped in a narrowing trading range for the past two weeks.
The broader cryptocurrency market also retreated, with the total market capitalization falling to roughly $2.93 trillion. Ether, XRP, and Solana each dropped between 1% and 2%, though Cardano bucked the trend with an 11% gain. HYPE rose about 3%, and GRT and NEAR each added around 7%. Leveraged traders faced heavy losses, with more than $109 million in Bitcoin futures positions liquidated in the 24 hours through Monday afternoon. Short sellers lost $62 million, while long positions saw $47 million in liquidations.
Analysts noted that Bitcoin has formed a pattern of higher local lows since the start of last week, though buyers have struggled to generate sustained momentum. The price has neared the apex of a triangle formed by horizontal resistance at $87,000 and a rising support line, a setup that typically precedes a sharp directional move. Alex Kuptsikevich of FxPro cautioned traders to prepare for higher volatility if the breakout occurs.
The technical picture reflects a market caught between conflicting forces. On-chain analytics firm Glassnode observed that upward momentum has moderated, with heavy profit-taking but no immediate sign of a trend reversal. Trading desk QCP Capital pointed to elevated oil prices and rising long-dated bond yields as factors limiting gains for risk assets broadly. The contrast between record-setting equities and a stalled Bitcoin rally underscores the headwind that elevated yields and a stronger dollar have imposed on crypto markets.