Bitcoin regained the $84,000 level as the recent surge in long-term U.S. Treasury yields eased.

On Oct. 1 (local time), blockchain media outlet Cointelegraph reported that bitcoin traded above $84,000 around the time Wall Street opened. It kept a pattern of higher lows on an hourly basis.

The market was more sensitive to long-term yield moves than to bitcoin's rebound itself. Yields on U.S. 30-year and 10-year Treasuries both fell after hitting new highs on macro indicators. The 10-year yield in particular rose to 5.342 percent, the highest level since April 2002, before falling to 5.251 percent.

Anxiety over bond market selling also persisted. The New York Times reported that Mahmoud Pradhan, a former deputy director at the International Monetary Fund's Europe department, said the market was highly uneasy about rising public debt and that higher yields were increasing governments' interest costs. He also said the war in the Middle East had changed everything and pointed to higher oil prices feeding into inflation readings.

The U.S. personal consumption expenditures (PCE) price index for August rose 3.4 percent from a year earlier, below expectations, but the market reaction was limited. Some analysts saw much of the slowdown as the result of a change in how the indicator is calculated. Benjamin Cowen said yields rose rapidly after concerns grew that the U.S. Federal Reserve was no longer taking inflation seriously.

In short-term price action, a range held as thickening sell and buy orders built up above and below the spot price. CoinGlass data showed key levels at the time were $84,500 and $82,900. Both zones were cited as potential points that could pull prices toward them.

The market is also watching support around $82,500. Trader Rekt Capital said bitcoin could slide once more to this zone. He said that if it successfully retests the level, it could lead to the next trend extension, adding that while the retest process can be rough based on past moves, it should be viewed step by step.

Earlier, Rekt Capital said whether bulls could hold $82,500 as support would determine a broader rebound phase. The market is therefore watching whether long-term U.S. yields ease further and whether bitcoin can keep lifting highs and lows while holding the $82,500 support level.

“The 10Y yield is now at around 5.3 Yields have gone up rapidly since the market became concerned that the Fed was no longer taking inflation seriously. Well the bond market has revolted, and until the Fed gets a proper handle on inflation, this will likely continue.”