BTC Struggles Below $85,000 as Rising Yields Weigh on Risk Assets

Bitcoin (BTC) is struggling to break above $85,000 after failing to close above this level earlier in the week. The price of BTC has consolidated near $83,000 at the time of writing on Wednesday.

The rising US Treasury yields are weighing heavily on Bitcoin and other risk assets, pushing investors away from these assets and pausing the upside momentum of BTC. The 5-year yield has risen above 5%, while the 10-year yield is above 5.2%, with both at 19-year highs.

A recent report by K33 Research suggests that Bitcoin's market structure remains relatively healthy, despite a major derivatives deleveraging event. The report notes that BTC absorbed this event without a sharp price decline, and that the market has undergone an orderly reset. With little leverage left to trigger forced liquidations, the report sees considerable upside asymmetry.

The technical analysis of Bitcoin shows that the momentum indicators are fading, with the Relative Strength Index (RSI) at 59 staying in neutral-to-positive territory. The Moving Average Convergence Divergence (MACD) histogram is slightly negative, suggesting waning upside pressure rather than a decisive trend shift.