Bitcoin nears highest level since January as $85,000 sell wall clears, US jobs data disappoints

Bitcoin (BTC) climbed above $86,000 on Friday after sellers partly filled and then pulled the remaining asks around $85,000, according to Glassnode, leaving little resistance above, the onchain analytics firm said.Bitcoin was changing hands near $86,700 at the time of writing. In a market note on Friday, analysts at QCP Capital said the foremost cryptocurrency had broken out of the $82,500 to $85,700 range it traded in over the past week, topping $87,000 earlier on Friday — its highest level since Sept. 23, putting bitcoin 14.6% above its Sept. 15 low of $74,968 and nearing its best price since January.The next group of sell orders sits around $87,000, Glassnode said, with about half as many at that level compared to the old $85,000 wall.Bitcoin approaches September highQCP put resistance at $87,400 and support at $82,500, with bitcoin holding the lower level three times this week. Resistance at $87,400 is the "gateway to $90,000," the analysts said.Bitcoin rose 12% in September, QCP noted, while gold fell 8.5% during a month in which the 10-year inflation-protected Treasury yield rose about 44 basis points, while long-term inflation expectations barely moved. The firm said bitcoin's rally appeared “more consistent with a concentrated flow trade" rather than a pure debasement narrative or a broad rejection of the bond sell-off. U.S. spot bitcoin ETFs recording about $2.6 billion in September and the Securities and Exchange Commission's innovation exemption were catalysts, in the analysts' view.The market is now positioning for the post-election period, QCP said, with options positioning showing clients rolling October $90,000 calls into November, the month containing midterms, Treasury refunding, and the December Fed meeting.Weaker-than-expected U.S. jobs dataMeanwhile, U.S. employers added 29,000 jobs in September, according to nonfarm payrolls figures released Friday, below the 84,000 to 93,000 QCP had expected. The unemployment rate rose to 4.2% from 4.1%."Weak print strengthens the no October hike scenario, but weak is not automatically bullish: soft-but-orderly supports the liquidity trade, a growth scare pulls risk assets, bitcoin potentially included," Sygnum Bank Chief Investment Officer Fabian Dori told The Block. "Liquidity stays the driver either way."Paul Howard, senior director at crypto market maker and OTC liquidity provider Wincent, told The Block that his expectation for bitcoin to break $100,000 by the end of the year remains intact, particularly following Citi's recently revised $113,000 price target."In the near term, I expect BTC to continue oscillating around the $85,000 level, but a sustained break above $90,000 could open the door to a stronger move higher, with relatively limited resistance beyond that point," Howard said."Uptober is off to a strong start," 21Shares Senior Crypto Research Strategist Matt Mena noted. "Q4 is historically Bitcoin's best quarter, averaging 62.7% gains, and the stage is set for a strong year-end close," he said.