[DigitalToday intern reporter Seung-a Yoo] Bitcoin failed to break back above $85,000 and gave up gains. U.S. Treasury yields surged to levels not seen in decades, putting pressure on stocks and precious metals.

On Sept. 29 (local time), blockchain media outlet Cointelegraph reported that bitcoin rose to $84,540 as the U.S. stock market opened. It later fell below its intraday open of $83,600.

U.S. Treasury yields extended gains on the day. The 30-year yield rose above 5.60 percent to the highest level in 24 years, and the 10-year yield climbed to 5.26 percent, nearing a move above the June 2007 peak. That marked the highest level since April 2002.

Geopolitical uncertainty over a war between the United States and Iran, high oil prices and persistent inflation also added to investor caution. The sharp rise in Treasury yields also affected the precious metals market. Gold prices fell 3.6 percent on Sept. 28 to $4,115 an ounce, then rebounded to $4,166 at the time of writing.

Market analysis account The Kobeissi Letter called the move in gold prices "highly unusual". It said the surge in Treasury yields was causing "abnormal turmoil" across the broader precious metals market.

U.S. stocks moved with little volatility. Mosaic Asset Company said the stock market was in an "extremely oversold" state and suggested room for further gains.

Mosaic Asset Company said the share of stocks in a short-term uptrend since the start of the year had fallen to levels similar to late March, when the S&P 500 index was nearing correction territory. It also said several indicators of market breadth were showing oversold conditions, and that bearish sentiment among investors had increased sharply over the past two weeks.

Mosaic Asset Company added that solid economic indicators, including August job growth beating expectations, could support additional stock gains despite Federal Reserve rate hikes. The market expects the Federal Reserve to raise its policy rate by 0.25 percentage point at its October meeting.

In the short term, bitcoin prices were also influenced by shifts in liquidity in exchange order books. CoinGlass data showed prices fell as sell resistance around $85,000 thickened on the day. A similar move earlier in the week saw prices hit overhead resistance and then retreat.

On-chain analytics platform Glassnode said bitcoin held by long-term holders (LTH) is concentrated around $85,000. Long-term holders are wallets that have held UTXOs for at least six months without selling.

In a post on X, formerly Twitter, Glassnode said, "Bitcoin has stalled just below its heaviest supply cluster." It said more long-term holder supply sits at $84,000 to $85,000 than at any other price zone. It added that for the rally to continue, the price needs to break through that level and hold above it.

Bitcoin is thus facing pressure near $85,000 as exchange sell orders and long-term holder supply act as a combined burden.

bitcoin:native has stalled under its heaviest supply cluster. More long-term holder coins sit at $84k–$85k than at any other price on the chart. Price needs to break through and hold above this level for the rally to continue. pic.twitter.com/9lPrDhs4P4