Bitcoin moved above $84,000 on Thursday as U.S. bond yields pulled back from fresh multi-decade highs.
BTC/USD was attempting to preserve a short-term pattern of higher lows as traders watched the first U.S. trading session of October.
Bitcoin Holds Above $84,000
Bitcoin gained around 0.6% on the day, with hourly price action continuing to show a series of higher lows.
The $84,000 area remained an important short-term level as traders assessed whether Bitcoin could extend its rebound.
At the same time, movements in the U.S. bond market continued to influence broader risk sentiment.
U.S. 10-Year Yield Retreats From 24-Year High
The U.S. 10-year Treasury yield climbed as high as 5.342%, its highest level since April 2002.
However, yields later moved lower, falling to around 5.251%.
The U.S. 30-year yield also reached a fresh multi-decade high before easing.
Lower yields can provide some relief for risk assets, including Bitcoin, because they reduce the relative appeal of fixed-income investments.
Bond Market Faces Growing Pressure
Concerns over rising government debt have contributed to the recent selloff in global bond markets.
Higher yields increase borrowing costs for governments and can also raise financing expenses across the wider economy.
Geopolitical tensions and higher oil prices have added another layer of pressure by increasing concerns about inflation.
Inflation Remains a Key Factor
The latest U.S. Personal Consumption Expenditures index showed inflation rising 3.4% year over year in August.
The reading came in below expectations, but markets showed only a limited reaction.
Some analysts argued that investors remain more focused on whether inflation will stay elevated and how the Federal Reserve will respond.
Crypto analyst Benjamin Cowen said the rapid rise in yields reflects growing concern that monetary policy may not be restrictive enough to fully control inflation.
Bitcoin Liquidity Builds Around Key Levels
Bitcoin continued to trade between large areas of liquidity above and below the current price.
Data from CoinGlass highlighted $84,500 and $82,900 as two important short-term zones.
These levels could attract price action as traders position around nearby long and short orders.
Around $25 million in crypto positions had been liquidated over the previous 24 hours, helping keep Bitcoin in a relatively tight trading range.
Bitcoin Could Retest $82,500 Support
Trader and analyst Rekt Capital identified $82,500 as a key support level to watch.
According to his analysis, Bitcoin may need to retest this area before attempting another sustained move higher.
A successful defense of $82,500 could help support the current recovery structure.
However, the analyst warned that the retest could remain volatile before a clearer trend develops.
$82,500 Could Decide Bitcoin’s Next Move
Bitcoin’s ability to hold above $82,500 may play an important role in determining whether the current rebound can continue.
A breakdown below this area could weaken the short-term bullish structure.
On the other hand, holding support and reclaiming higher resistance levels could strengthen the case for further upside.
For now, Bitcoin price action remains closely linked to U.S. Treasury yields, inflation expectations and broader risk sentiment.
