Minal Thukral, Executive Vice President-Growth & Crypto Business Head at CoinDCX, said Bitcoin was trading around $84,250, continuing to consolidate after the sharp drop from $87,200.
The broader crypto market remained mixed, with the Crypto Fear and Greed Index at 73, indicating a greedy market sentiment.
The recent pullback has come against a backdrop of tighter financial conditions and renewed pressure on risk assets.
Vikram Subburaj, CEO of Giottus.com, said Bitcoin was trading around $84,200 as rising US Treasury yields triggered a broader risk-off move. He noted that the 10-year US Treasury yield has moved above 5%, while markets are reassessing the path of US interest rates with expectations turning more hawkish.
Riya Sehgal, Research Analyst at Delta Exchange, also pointed to higher oil prices and US Treasury yields as factors weighing on risk appetite. She added that conflicting reports around possible US-Iran talks have kept the macro outlook unsettled.
Bitcoin’s recovery has nevertheless found some support from demand in the spot market.
Prateek Gupta, Head of Business at Mudrex, said Bitcoin was holding near $84,000 even as a renewed bond sell-off and stronger-than-expected jobs data kept broader risk appetite in check.
Are investors still buying Bitcoin?
Despite the correction, some indicators point to continued demand.
Gupta said spot Bitcoin ETFs recorded inflows for a fifth consecutive day, attracting more than $2.65 billion so far. He also said holders with 100-1,000 BTC had accumulated more than 113,000 BTC since mid-July, while profit-taking remained moderate.
However, the pace of ETF buying has not been uniform. Subburaj said spot Bitcoin ETF inflows slowed sharply to $28.1 million on September 24, after stronger buying earlier in the week.
The CoinSwitch Markets Desk also said consistent ETF inflows and continued whale accumulation suggest underlying demand remains firm despite macro pressures.
Why are traders watching leverage?
The recent price move has also affected leveraged positions. CoinSwitch said intraday volatility briefly pushed Bitcoin below $83,000, triggering nearly $80 million in BTC long liquidations.
Nischal Shetty, Founder of WazirX, said derivatives activity had cooled, with open interest falling around 16% to approximately $376 billion. He added that 24-hour derivatives volume declined 16.3% to $937.4 billion, while long liquidations stood at $208.61 million, compared with $116.75 million in short liquidations.
According to Shetty, the decline in leverage suggests traders are reducing risk even as the spot-market recovery remains constructive.
What could move Bitcoin next?
The market is also heading into a period of higher derivatives volatility, with the September 25 crypto options expiry adding to short-term positioning risks, according to Subburaj.
Sehgal said traders would also be watching US economic releases, oil prices and bond yields. She added that the quarterly crypto options settlement could increase volatility, while the next confirmed two-hour closes would be more useful than brief moves through key levels.
Shetty said Bitcoin’s recovery is entering an important confirmation phase, with a weekly close above $82,500, followed by a reclaim of $85,000, strengthening the technical setup.
For investors, Subburaj said it may be better to avoid chasing sharp moves and keep leverage limited until the market settles around key support levels.