Bitcoin Nears $87,000 Before Reversing Below $86,000
Bitcoin rose 1.5% to above $86,000 during Asian trading on Monday, briefly reaching nearly $86,950 before reversing to below $86,000. The move brought Bitcoin within about $500 of its late-September peak near $87,400, but marked the second rally in a week to stall below that resistance level.
Bitcoin remains up about 1.3% over 24 hours. Dogecoin led major cryptocurrencies, gaining more than 3% to just under $0.10. XRP, BNB and Zcash rose between 1% and 2%, while Ethereum and Hyperliquid gained less than 1%. Solana and TRON were broadly flat.
The rally followed softer US jobs data, which reduced expectations that the Federal Reserve would need to keep raising interest rates. The 10-year US Treasury yield fell two basis points to 5.25%, although it remained near its highest level since 2002. Global equities also advanced, with the Nasdaq 100 closing at a record and Asian stocks gaining.
For traders, Bitcoin’s ability to close above $87,000 would be an important bullish signal and could open a path towards a new eight-month high. However, repeated failures near $87,400 indicate persistent selling pressure. The falling Treasury yield supports risk assets, but a stronger US dollar and elevated bond yields remain potential headwinds.
Bullish
The immediate market impact is cautiously bullish. Bitcoin gained alongside global equities after softer US jobs data reduced expectations for further Federal Reserve tightening. Lower interest-rate expectations and a falling 10-year Treasury yield generally support Bitcoin and other risk assets by reducing the relative appeal of cash and government bonds.
However, the rally has not yet confirmed a sustained breakout. Bitcoin approached $87,000 and then lost roughly $1,000, while the late-September high near $87,400 remains unbroken. A daily close above $87,000, followed by a move through $87,400, would strengthen bullish momentum and could attract breakout traders. Failure to clear that zone may encourage profit-taking and send Bitcoin back towards support near $86,000 or lower.
This pattern resembles previous crypto rallies driven by softer inflation or employment data: prices often rise quickly on rate-cut expectations but reverse when Treasury yields remain elevated or traders lock in profits. The current 5.25% 10-year yield and stronger US dollar are therefore important risks. In the short term, volatility and resistance-driven pullbacks are likely. In the longer term, continued easing in labour-market data and declining yields could improve liquidity conditions and support Bitcoin, provided macroeconomic pressure does not intensify.