Bitcoin has surged approximately 10% to 14% in the last seven days, breaking above the $85,000–$87,000 range according to latest market data. The cryptocurrency has recovered from a brief dip below $84,000 that occurred after a stronger-than-expected US business activity report pushed Treasury yields higher. As per Mint, 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. The recovery demonstrates Bitcoin's resilience despite headwinds from elevated bond yields and geopolitical uncertainties.
Institutional interest continued to provide crucial support for Bitcoin's recent rally, with US spot Bitcoin ETFs recording inflows of around $1.71 billion over September 21–22, according to Delta Exchange Research Analyst Riya Sehgal. 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. The liquidations can fuel further buying as prices rise, forcing traders who had bet on declines to close their short positions. However, near-term momentum has weakened, and the recent rebound has yet to establish a sustained recovery, with two-hour RSI readings near 43 indicating weak momentum.
The S&P Global flash Purchasing Managers' Index (PMI) showed strong business activity growth, with September's composite reading rising to 58.4 from 56.0 in August. This represents the fastest growth since July 2021, while the manufacturing gauge jumped to 57.0 from 53.9, its strongest since May 2022. However, the report also flagged rising costs, with input prices climbing at the fastest rate since October 2022 as oil pushed fuel and transport bills higher. Hiring hit its quickest pace since June 2022, though this comes amid rising cost pressures that will add further upward pressure on selling prices and inflation in coming months.
According to WazirX Founder Nischal Shetty, $83,520 is the key support level to watch, followed by $81,000. A sustained move above $87,000 could restore positive momentum, while immediate support lies at $83,500–$84,000, followed by $82,000. On the technical front, Delta Exchange analyst Riya Sehgal noted that the market is stabilizing but a sustained recovery remains unconfirmed. Ether needs to reclaim $2,700–$2,725, while $2,630–$2,650 remains nearby support. The crypto market capitalization has risen to $2.8 trillion, its highest level since the end of January this year.
Markets now face two critical diplomatic tests: progress on US–Iran negotiations and the Trump–Xi meeting, according to market analysts. Constructive outcomes could support sentiment, while renewed tensions would compound pressure from elevated yields and energy prices. As per Pi42 Co-Founder & CEO Avinash Shekhar, the $100,000 level remains an important psychological milestone, but the more meaningful signal will be the behavior 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.
