Can Bitcoin defend $85,000 support, or will weakening bids send it toward $83,000?

Can Bitcoin defend $85,000 support, or will weakening bids send it toward $83,000?

The tech-led rally on Wall Street pushed the Nasdaq 100 to a record close of 31,076 and lifted the S&P 500 by 0.7 per cent, while the Dow Jones added 91 points, or 0.18 per cent, to close at 51,268. Nvidia gained 2.1 per cent, and Microsoft added 1.5 per cent, powering large-cap advances. Investors shrugged off multi-decade highs in Treasury yields. US oil prices extended recent declines amid fluctuating supply outlooks. This backdrop usually supports risk assets. Crypto did not join the party. Bitcoin slipped 0.58 per cent to US$85,848.40 in the same 24-hour window. That divergence deserves attention because it shows where capital is flowing and what it is waiting for.

I keep returning to the technical picture for the largest cryptocurrency because it explains the sluggishness better than any broad macro story. The digital asset faced repeated rejections at the US$87,000-US$87,400 resistance zone on October 5. That zone aligns with the cost basis of medium-term holders. Selling pressure met each attempt to break higher. The 24-hour volume surged 100 per cent to US$29.95 billion as traders defended or exited positions. That volume spike does not signal accumulation. It signals a supply wall being tested and held. Until the price achieves a decisive 4-hour close above US$87,300, upside momentum stays limited. The market understands this.

The fallout from those rejections spread into derivatives. Liquidations wiped out over US$109 million in leveraged BTC positions in a single day. Forced selling from over-leveraged traders amplified the drop. A technical failure became a broader flush. At the same time, the CMC Altcoin Season Index rose 5 per cent in a week to 63. Some capital is rotating into higher-beta opportunities. This is not a full-blown altcoin season. It is a mild risk-on rotation that adds a secondary headwind for the leading crypto asset. When leverage unwinds and capital explores alternatives, the path of least resistance for the top coin becomes sideways at best.

The 64 per cent correlation between Bitcoin and Gold stands out. This is no coincidence. The leading crypto asset currently trades as a macro instrument, sensitive to the same forces that drive gold demand, rather than as a purely crypto-native asset. Wall Street can rally on tech leadership while crypto stalls. The marginal buyer in equities is not the same marginal buyer in digital assets. Equity investors chase earnings growth and artificial intelligence narratives. Crypto investors watch liquidity conditions, regulatory signals, and the next macro print. The September PCE inflation report on October 29 looms as the next major event that could shift direction. Until then, the market seems content to wait.

From a structural standpoint, the immediate battlefield is clear. Support sits near US$85,000 to US$85,500. Resistance remains at US$87,000. If the price holds above that support zone, the base case is a consolidation followed by a retest of US$87,000. A break below opens the door to a move toward US$83,000. The Fibonacci 61.8 per cent retracement level at US$85,736 is the line in the sand for bears. A close below that level would signal bearish momentum taking hold. On the other side, spot Bitcoin ETF flow data remains a critical variable. Consistent inflows would build a case for sustainable demand above US$87,000. Inconsistent flows leave the market vulnerable to further flushing.

This is where the upcoming TOKEN2049 Singapore event becomes more than a calendar item. Taking place from Wednesday, 7 October to Thursday, 8 October 2026 at Marina Bay Sands. I will be there. I am curious to see how the crowd reads the market this time. Conferences like this tend to amplify sentiment. When price action is range-bound and technical levels hold, the collective mood of builders, investors, and traders can become a self-fulfilling prophecy. If the crowd arrives optimistic, that energy can translate into bids. If the crowd arrives cautious, the US$85,000 support could come under pressure from a different kind of volume. That volume would come not just from leveraged liquidations but from spot selling by attendees who decide to de-risk.

I am not suggesting that a conference determines price. That would be naive. I suggest that, in the absence of a clear macro catalyst, sentiment becomes the catalyst. The market currently leans neutral-to-bearish until US$87,000 is reclaimed. The derivatives flush has run its course for now. The altcoin rotation is mild. The macro calendar is quiet until October 29. In this vacuum, the crowd at TOKEN2049 matters more than usual. Their collective positioning, their conversations, their willingness to buy dips or sell rallies, will feed into the order books in real time.

Let me offer my point of view plainly. I think Bitcoin is in a holding pattern that will not resolve until either the US$87,000 resistance breaks with conviction or the US$85,000 support gives way. The tech-led rally on Wall Street is a positive backdrop. It is not enough to drag crypto higher on its own. The correlation with Gold tells me that the leading crypto asset needs a macro trigger. The PCE data on October 29 is the most likely candidate. Until then, I expect range-bound trading between US$85,000 and US$87,000, with occasional tests of either boundary. The risk of a deeper correction toward US$83,000 is real if support fails. The base case remains consolidation.

What I will watch at TOKEN2049 is not the panels or the announcements, though those matter. I will watch the hallway conversations and the body language. Are people talking about buying the dip or waiting for lower prices? Are builders optimistic about the next cycle or focused on survival? That collective mood, more than any single technical indicator, will tell me whether the US$85,000 support holds on the next test. The crowd determines the market this time. I intend to listen closely before I make my own call.

 

Source: https://e27.co/can-bitcoin-defend-us85000-support-or-will-weakening-bids-send-it-toward-us83000-20261006/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.

j j j

Biden’s plan to close crypto tax loss harvesting loophole is a step in the right direction

Biden’s plan to close crypto tax loss harvesting loophole is a step in the right direction

President Joe Biden’s proposed budget plan has caused a stir in the crypto community due to its intention to terminate tax loss harvesting on crypto transactions. The reactions from the community have been mixed, with some perceiving this as an infringement on the freedom of crypto traders while others view it as a necessary step in regulating the industry and curbing tax evasion.

Tax loss harvesting is a technique used to minimize an individual’s tax liability by deliberately selling an investment at a loss to offset present and/or future capital gains. It reduces the amount of tax one pays for selling profitable investments. Although tax loss harvesting is usually carried out manually towards the end of the year, a systematic approach that identifies these opportunities automatically and acts on them throughout the year can be more effective, even for fixed income or income-generating securities. This approach allows individuals to decrease their tax liability by deducting the losses from their taxable income. However, this strategy has come under fire for being a loophole that enables affluent investors to evade taxes. The termination of tax loss harvesting on crypto transactions is estimated to raise up to $24 billion and reduce the deficit by $3 trillion.

Advocates of this proposition contend that it is an imperative measure to promote fairness and equity among taxpayers by ensuring that everyone contributes their fair share. They argue that the current tax system is biased towards the wealthy, who are able to exploit various tax loopholes and deductions to lower their tax bills. This ultimately results in middle-class and low-income earners being unfairly burdened with a disproportionate share of taxes. This imbalance creates an unjust and unequal tax system.

On the other hand, critics of the Biden budget plan assert that ending tax loss harvesting on crypto transactions is ill-advised as it could discourage innovation and investment in the cryptocurrency industry. They posit that this move could prompt some investors to relocate their assets offshore or to other countries with more lenient tax policies, leading to an exodus of talent and capital from the United States. Moreover, they contend that this change could disproportionately affect small and medium-sized enterprises that depend on cryptocurrency investment and trading for their expansion and growth.

The strategy of tax loss harvesting is commonly utilized by investors in the United States as a means of reducing capital gains taxes on their cryptocurrency investments. However, this approach is not extensively used in other countries due to differences in tax policies specific to cryptocurrency investments. For instance, in Canada, cryptocurrency investments are regarded as commodities and are thus subject to capital gains taxes. Meanwhile, in Australia, profits from cryptocurrency investments are also subject to capital gains taxes, with cryptocurrency considered property for tax purposes.

In the United Kingdom, gains from cryptocurrency investments are taxable under capital gains tax, but it is not possible to use losses to offset other gains. On the other hand, in Germany, cryptocurrency investments held for over a year are exempted from capital gains taxes, but those held for less than a year are taxed at the investor’s personal income tax rate. While other countries like Japan and South Korea have also established tax policies specific to cryptocurrency investments, these policies can differ significantly and may be subject to revision over time.Closing the crypto tax loss harvesting loophole could be viewed as a step in the right direction towards regulating the cryptocurrency industry and ensuring tax fairness. However, it is important to weigh the potential consequences of this policy change.

To summarize, I believe that closing the cryptocurrency tax loss harvesting loophole as proposed in President Biden’s budget plan is not a good policy. It could have negative impacts on small investors, innovation, and the market as a whole, while also not generating significant revenue for the government. Rather than this approach, I suggest exploring alternative policies that promote growth and innovation in the cryptocurrency industry while still ensuring that the government can collect revenue.

By Anndy Lian.

The author is an intergovernmental blockchain expert

Source: https://www.financialexpress.com/blockchain/bidens-plan-to-close-crypto-tax-loss-harvesting-loophole-is-a-step-in-the-right-direction/3013562/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.

j j j