BTC Price Drops Below $86K: Will Bitcoin Hold Above $87K?

Bitcoin's price has taken a hit, dipping down to around $85,550. This comes after an initial surge earlier in the week due to a broader risk-on shift in the market.

Falling oil prices and softer Treasury yields have contributed to renewed appetite for Bitcoin and other cryptocurrencies. Additionally, easing U.S., Iran tensions have removed a geopolitical overhang that was weighing on sentiment.

Market snapshot data shows that BTC has been trading in 'extreme greed' territory above $86,450 before pulling back towards the $85,000 zone during Asian hours.

While some market participants may be taking profits as quickly as they take positions, others are eyeing a potential breakout. The question now is whether the price can hold above $87,000 and potentially reach the $88,700 resistance band.