Bitcoin tests long-term holder supply cluster as leverage clears, analysts say

Bitcoin's latest gains were halted as sellers held the line above the current $85,000 level, despite soaring US bond yields placing pressure on stocks and precious metals. Following Wall Street's opening bell on Tuesday, Bitcoin (BTC) retraced its earlier rally to $84,540, with BTC/USD retreating below its daily opening price near $83,600.

On the one-hour chart, BTC/USD remained under pressure. US bond markets showed no signs of easing, with the 30-year yield reaching 24-year highs of 5.60% and the 10-year yield nearing 5.26%, close to its June 2007 peak. Geopolitical tensions, high oil prices, and inflation concerns kept investors wary, while rising yields negatively impacted precious metals.

Gold experienced a 3.6% drop on Monday, falling from $4,115 to $4,166 per ounce. Some market analysts believe the surge in yields is causing significant disruption in the precious metals market. Despite the current challenges, some traders remain optimistic, noting that robust economic data, such as higher-than-expected August job gains, could fuel further stock gains.

The Federal Reserve is expected to raise interest rates by 0.25% at its October meeting. Meanwhile, on low timeframes, Bitcoin remained under the influence of exchange order-book liquidity shifts, with overhead resistance thickening at $85,000, causing price to drop. Onchain analytics from Glassnode revealed that long-term holders (LTHs) - wallets holding UTXOs for at least six months without selling - were concentrated around the $85,000 mark, suggesting the potential for profit-taking if Bitcoin attempts to break above this level.