Bitcoin’s highest weekly close in eight months formed low-timeframe resistance at the start of Monday’s US trading session.
Bitcoin (BTC) fluctuated around $86,000 after Monday’s Wall Street open as US bond yields continued to rise.
Data from TradingView showed BTC/USD struggling to move beyond its weekly open level near $86,500 after the highest weekly close since late January.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
US bond yields, already under scrutiny, headed higher on the day. The 30-year yield passed 5.67% once again, just two basis points below 24-year highs seen last week. The 10-year yield returned to 5.31%, with last week’s high at 5.34%.
US 30-year bond yield one-hour chart. Source: Cointelegraph/TradingView
Commenting, trading company QCP Capital reiterated that even recent cooler US employment data had not been enough to calm bond markets as broader geopolitical uncertainty persisted.
“Despite the dovish employment print, elevated oil prices and elevated long-dated yields continue to limit upside momentum for risk assets broadly,” it wrote in its latest analysis.
US stocks opened moderately higher on Monday, with the S&P 500 and tech-heavy Nasdaq Composite Index up 0.5% and 0.7%, respectively, as traders saw the Federal Reserve pausing interest-rate hikes at the next Federal Open Market Committee (FOMC) meeting on Oct. 28.
S&P 500 one-day chart. Source: Cointelegraph/TradingView
In a note quoted by CNBC, Deutsche Bank analysts suggested that the minutes from the September FOMC meeting, to be released on Wednesday, would carry more weight than usual due to the bond sell-off.
“The highly unsettled bond market makes the incoming US data and Fed communication particularly relevant. So the minutes will be worth watching for how the broader Committee is framing the current tightening cycle and for its discussion of the neutral rate, where estimates shifted higher in the September SEP,” they wrote, referring to the Fed’s most recent summary of economic projections.
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