Swan.my.id | Jakarta - Bitcoin faces renewed selling pressure after failing to break above the $87,000 level. On Tuesday, October 6, BTC traded around $85,531, down 1.02% over 24 hours.
The decline came after Bitcoin briefly approached $87,000 during the previous session. BTC reached $86,969 on Monday before losing momentum and retreating toward the $85,000 area.
Meanwhile, the broader macroeconomic environment has become less supportive for risk assets. The US Dollar Index (DXY) climbed to its highest level in around 18 months, while US Treasury yields also moved higher.
These developments are important for Bitcoin because a stronger dollar and higher bond yields can reduce investors' appetite for riskier assets. As a result, the market is now watching whether BTC can regain momentum or faces another rejection near key resistance.
Bitcoin Fails to Break $87,000 After Strong Weekly Close
Bitcoin's latest decline followed a strong weekly performance. BTC closed the week near $86,570, marking its highest weekly close in approximately eight months.
However, the rally lost momentum when Bitcoin approached the $87,000 threshold. The cryptocurrency reached $86,969 on October 5 but failed to establish a sustained move above that level.
The selling pressure became particularly visible during intraday trading. At one point, Bitcoin dropped from approximately $86,615 to $85,503 in less than 20 minutes.
Such a rapid move triggered significant liquidations across the derivatives market. More than $109 million worth of leveraged Bitcoin positions were reportedly liquidated.
Short positions accounted for roughly $62 million of the liquidations, while long positions represented around $47 million.
Despite the volatility, the latest market data does not necessarily indicate a structural reversal. Glassnode noted that buying dominance has weakened compared with mid-September, but the development has not yet confirmed a broader trend reversal.
In other words, Bitcoin's bullish structure may still be intact, but its upward momentum is becoming less aggressive.
Stronger US Dollar Creates Another Headwind
One of the biggest challenges for Bitcoin currently comes from the US dollar.
The US Dollar Index climbed to approximately 102.5 on October 5, its highest level in nearly 18 months. The DXY has risen sharply from around 99 at the beginning of September and has now moved above its 200-day moving average.
A stronger dollar can create pressure on risk assets for several reasons. Investors outside the United States may face weaker purchasing power when converting their local currencies into dollar-denominated assets.
At the same time, capital can become more attracted to US-based instruments when the dollar strengthens and interest rates remain elevated.
The euro has also weakened toward $1.12, its lowest level in roughly 17 months. Fiscal concerns in France and political uncertainty in Spain have contributed to pressure on the European currency.
This matters for the DXY because the euro carries a significant 57.6% weighting in the index. Therefore, weakness in the euro can provide additional support for the dollar index.
For Bitcoin, the combination of a stronger DXY and elevated yields creates a more challenging environment for a sustained breakout.
Rising Treasury Yields Limit Bitcoin's Upside
US Treasury yields are another factor that investors are closely monitoring.
The 30-year Treasury yield moved above 5.67%, only around two basis points below its highest level in 24 years. Meanwhile, the 10-year Treasury yield climbed to approximately 5.31%, approaching the previous week's high of 5.34%.
Higher yields increase the attractiveness of interest-bearing assets such as government bonds. Bitcoin, by comparison, does not generate traditional interest income simply by being held.
Because of this, investors may demand stronger reasons to maintain exposure to higher-risk assets when Treasury yields rise.
QCP Capital also highlighted the combination of elevated oil prices and long-term bond yields as factors limiting the momentum of risk assets.
Meanwhile, recent US employment data has provided some more dovish signals. However, those developments have not been enough to offset the pressure coming from the bond market and commodity prices.
The Federal Reserve's monetary policy remains another important variable. The Fed raised its policy rate by 25 basis points to a range of 3.75%–4% in September, while markets continue to assess the possibility of additional tightening.
Can Bitcoin Reclaim $87,570?
With Bitcoin struggling near $87,000, traders are now watching the next major resistance around $87,570.
This level is particularly important because it represents Bitcoin's opening price for 2026. A sustained move above this area could strengthen the bullish case and signal that buyers are regaining control.
However, repeated failures near resistance could also encourage short-term traders to take profits.
The market is therefore likely to remain volatile while Bitcoin trades between its recent support and resistance zones.
Several factors could determine the next move:
- $87,570: A key resistance area and the 2026 opening level.
- $87,000: The psychological barrier that Bitcoin has recently failed to overcome.
- DXY: Continued dollar strength could pressure risk assets.
- 10-year Treasury yield: Higher yields may increase competition for Bitcoin capital.
- 30-year Treasury yield: Its move above 5.67% highlights persistent bond-market pressure.
- Federal Reserve policy: Future rate decisions could influence global liquidity and risk appetite.
- FOMC minutes: The September meeting minutes may provide additional clues about the Fed's policy outlook.
The upcoming FOMC minutes are particularly important because investors want more clarity on how policymakers view interest rates and the neutral rate amid volatility in the Treasury market.
What Could Happen to Bitcoin Next?
Bitcoin's latest pullback does not automatically mean that the broader rally has ended.
The cryptocurrency still managed to record its strongest weekly close in eight months. That suggests buyers remain active despite the recent rejection near $87,000.
However, the macroeconomic backdrop has become increasingly important.
A stronger US dollar, elevated Treasury yields, and high oil prices could continue limiting Bitcoin's upside. On the other hand, any significant improvement in liquidity expectations or a decline in yields could provide BTC with another opportunity to challenge resistance.
Therefore, investors should avoid interpreting a single rejection as confirmation of a major bearish reversal.
Instead, the market needs to monitor whether Bitcoin can establish support above recent trading levels and eventually break through $87,570 with sufficient volume.
If that happens, the failed attempts near $87,000 could eventually become a consolidation phase before another leg higher.
Conversely, continued rejection combined with rising yields and a stronger dollar could increase downside pressure and force Bitcoin to retest lower support zones.
Bitcoin's Rally Now Faces a Macro Test
Bitcoin's inability to break $87,000 highlights the growing influence of macroeconomic conditions on the cryptocurrency market.
Although BTC remains relatively strong after its best weekly close in eight months, the stronger US dollar and rising Treasury yields are creating significant headwinds.
The next major test is around $87,570. A decisive breakout could restore bullish momentum, while another rejection could increase short-term selling pressure.
Meanwhile, investors should continue watching the DXY, Treasury yields, Federal Reserve policy, oil prices, and upcoming economic data.
Swan.my.id | Jakarta - Bitcoin's next move may ultimately depend not only on crypto-specific demand but also on whether global markets become more supportive of risk-taking.
FAQ
Why did Bitcoin fail to break $87,000?
Bitcoin faced resistance near $87,000 while a stronger US dollar and higher Treasury yields reduced the broader appetite for risk assets. Profit-taking and derivatives liquidations also contributed to short-term volatility.
Why does a stronger US dollar affect Bitcoin?
A stronger dollar can reduce purchasing power for investors outside the United States and increase the relative attractiveness of dollar-denominated assets. This can limit capital flows toward riskier assets such as Bitcoin.
How do Treasury yields affect Bitcoin?
Higher Treasury yields make interest-bearing government bonds more attractive. This can increase competition for capital that might otherwise flow into assets such as Bitcoin.
What is the next important Bitcoin resistance?
The $87,570 area is an important level because it represents Bitcoin's opening price for 2026. A sustained breakout above this level could strengthen the bullish momentum.
Does a stronger DXY always mean Bitcoin will fall?
No. The DXY is only one factor affecting Bitcoin. Liquidity, institutional demand, derivatives positioning, monetary policy, inflation, and market sentiment can also influence BTC.
What macro indicators should Bitcoin investors watch?
Key indicators include the US Dollar Index, Treasury yields, Federal Reserve interest rates, inflation, employment data, oil prices, and broader global liquidity conditions.