Cryptocurrency future: Bitcoin’s rally lost momentum after a stronger-than-expected US business activity report pushed Treasury yields higher. The BTC-USD price slipped below $84,000 roughly an hour after the data was released, reversing an earlier rally that had lifted Bitcoin above $87,000.
The decline came after Bitcoin had gained nearly $10,000 over four days, rising from around $74,900 following the recent vote to a high of approximately $87,300 on Monday.
However, Bitcoin has surged approximately 10% to 14% in the last seven days, breaking above the $85,000–$87,000 range.
What’s behind the rally in Bitcoin?
According to Riya Sehgal, Research Analyst, Delta Exchange, Institutional interest continued to provide support, with US spot Bitcoin ETFs recording inflows of around $1.71 billion over September 21–22. However, near-term momentum has weakened, and the recent rebound has yet to establish a sustained recovery.
Derivatives positioning further supported the upward momentum, with more than $1 billion worth of crypto positions being liquidated, including a significant portion of short positions, Sehgal said.
The liquidations can fuel further buying as prices rise, forcing traders who had bet on declines to close their short positions.
Sehgal further added markets now face two diplomatic tests: progress on U.S.–Iran negotiations and the Trump–Xi meeting. Constructive outcomes could support sentiment, while renewed tensions would compound pressure from elevated yields and energy price.
Bitcoin prices outlook – What lies ahead?
According to Nischal Shetty, Founder, WazirX, $83,520 is the key support level to watch, followed by $81,000. A sustained move above $87,000 could restore positive momentum. Markets may remain sensitive to bond yields, inflation expectations and geopolitical developments.
“Among altcoins, XRP is consolidating just below the psychologically important $1.50 level after its weekly surge. A decisive close above $1.50 – $1.52 could open the way toward $1.58 – $1.60. If momentum weakens, $1.45 – $1.47 is the first area to watch. Losing it could produce a deeper retracement toward $1.40,” Shetty said.
On the technical outlook, Riya Sehgal further added that the market is stabilizing, but a sustained recovery remains unconfirmed. Two-hour RSI readings near 43 indicate weak momentum.
“Bitcoin’s immediate support lies at $83,500–$84,000, followed by $82,000, with resistance at $85,000–$86,000. Ether needs to reclaim $2,700–$2,725, while $2,630–$2,650 remains nearby support,” she said.
Meanwhile, Avinash Shekhar, Co-Founder&CEO,Pi42, highlighted that the $100,000 level remains an important psychological milestone, but the more meaningful signal will be the behaviour of capital between now and then.
“If Bitcoin continues to attract substantial ETF inflows despite elevated yields and changing rate expectations, it would demonstrate that institutional demand is becoming an increasingly independent driver of the market. That shift could be more significant for Bitcoin’s next phase than any single short term price target,” Shekhar said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
