Bitcoin struggled to extend its recent gains on Monday after recording its highest weekly close in eight months.
BTC traded near $86,000 following the Wall Street open, while rising U.S. bond yields continued to limit momentum across risk assets.
Bitcoin was rejected near its weekly close of $86,570, while the 2026 yearly open at $87,570 remained a key resistance level.
Bitcoin Struggles Near $86,500 Resistance
Bitcoin price action remained relatively subdued during Monday’s U.S. trading session.
BTC/USD struggled to move above its weekly opening level near $86,500 after posting its strongest weekly close since late January.
The rejection suggests that sellers are still active around the current price zone.
Meanwhile, the 2026 yearly opening price of $87,570 remains an important psychological resistance level for Bitcoin bulls.
A sustained move above that area could be needed before the market can attempt another stronger breakout.
Rising U.S. Bond Yields Pressure Bitcoin
Higher U.S. Treasury yields added pressure to Bitcoin and other risk assets.
The 30-year U.S. Treasury yield climbed back above 5.67%, placing it just two basis points below the 24-year high reached last week.
The benchmark 10-year Treasury yield also rose to around 5.31%, approaching last week’s peak of 5.34%.
Higher bond yields can reduce investor appetite for riskier assets by making government debt more attractive.
Weak Jobs Data Fails to Calm Bond Markets
Recent U.S. employment data had initially raised expectations that the Federal Reserve could slow or pause further interest rate increases.
However, bond markets remained under pressure.
QCP Capital noted that weaker employment figures were not enough to offset the impact of elevated oil prices, rising long-term yields and continued geopolitical uncertainty.
According to the firm, these conditions are still limiting the upside potential for risk assets.
Stocks Rise as Traders Expect Fed Pause
U.S. equities opened moderately higher on Monday.
The S&P 500 gained around 0.5%, while the technology-focused Nasdaq Composite rose approximately 0.7%.
Investors increasingly expect the Federal Reserve to keep interest rates unchanged at its next Federal Open Market Committee meeting on October 28.
That outlook has improved sentiment in equity markets, although elevated bond yields remain an important source of uncertainty.
Fed Minutes Could Move Markets
Investors are also preparing for the release of minutes from the Federal Reserve’s September policy meeting.
The minutes are due on Wednesday and could receive greater attention than usual because of recent volatility in bond markets.
Deutsche Bank analysts said investors will closely examine how policymakers view the current tightening cycle and their estimates of the neutral interest rate.
Any shift in expectations for future interest rates could affect Bitcoin, stocks and bond markets.
Bitcoin Buying Momentum Begins to Fade
Onchain data also suggests that Bitcoin’s bullish momentum has weakened slightly.
Glassnode reported that buyer dominance has declined compared with mid-September, when Bitcoin returned to the $87,000 level for the first time in eight months.
However, the analytics platform said the slowdown does not necessarily indicate an immediate trend reversal.
Instead, it suggests that aggressive buying pressure has moderated following Bitcoin’s recent rally.
Profit-Taking Remains Elevated
Bitcoin has managed to hold most of its September gains despite continued profit-taking.
Glassnode noted that selling activity from investors taking profits remains relatively high.
Long-term Bitcoin holders are also receiving increased attention, particularly as BTC trades above the $85,000 region.
For now, Bitcoin remains caught between support from improving expectations for Federal Reserve policy and resistance from higher Treasury yields and fading short-term buying momentum.
A clear break above the $87,570 yearly opening level could become an important signal for the next stage of Bitcoin’s price trend.
