Bitcoin rejected at $83,000 as US bond yields climb alongside equities
In brief
- BTC/USD fell to $81,678 on Bitstamp after hitting $83,062, per TradingView data.
- Ask liquidity above $83,000 pressured price, per CoinGlass data; 24-hour liquidations totaled $335 million.
- US 10-year and 30-year Treasury yields reached 5.13% and 5.46%, respectively.
- QCP Capital flagged $80,000 as support at risk if equity deleveraging is sustained.
Stocks rallied, Bitcoin didn't
Asia and US equities rallied to start the week, recouping some of the prior week's losses as selling pressure on tech stocks eased. South Korea's tech-heavy KOSPI Composite Index closed 1.76% higher at 5,768 points. The Nasdaq Composite was up 1.5% at the time of Cointelegraph's report.
Bitcoin wasn't part of that move.
Cointelegraph reported that US bond yields rose in lockstep with equities ahead of expected tech earnings (continuing a pattern seen in recent weeks), with the 10-year and 30-year Treasury yields reaching 5.13% and 5.46%, respectively. Several of those releases were due Tuesday and Wednesday, including Meta, SpaceX and Tesla, per the outlet.
QCP Capital watches the bond market
Trading company QCP Capital said in its latest analysis that bond-market stability was key to Bitcoin upside momentum. It also warned that a repeat of the previous week's tech-stock sell-off could hurt BTC, and it flagged $80,000 as a support level that sustained equity deleveraging could put under pressure.
"Broader equity deleveraging dynamics could transmit to cryptocurrency markets and potentially threaten the $80,000 support level if sustained. Conversely, a sustained Treasury rally could provide support for risk assets, particularly if accompanied by declining real yields and a weaker US dollar," QCP Capital wrote.
That's QCP's read of the setup. It isn't a forecast from this desk.
A sell wall at $83,000 and less whale activity
On lower time frames, Bitcoin price action met resistance after ask liquidity thickened above $83,000 on exchange order books. CoinGlass data showed that wall of asks pressuring BTC/USD lower, while 24-hour cross-crypto liquidations totaled $335 million.
The onchain side came from CryptoQuant, which showed Bitcoin whales reducing activity amid rangebound conditions. Its Binance whale ratio fell to 0.45 from 0.54 at the start of October. The metric measures the share of the 10 largest inflow transactions relative to total inflows to the exchange, so a lower reading means big deposits made up a smaller slice of what's flowing in.
