Bitcoin Near $87K as US Stock Markets Reach New Highs
Bitcoin (BTC) hovered around $86,000 on Tuesday as US stock markets reached new all-time highs. The cryptocurrency faced resistance near $87,000 due to significant ask liquidity clustered at that level, limiting its upward momentum.
The S&P 500 Index rose 0.8% to 7,835 points, while the Nasdaq 100 and Nasdaq Composite Index also hit record highs at 31,312 and 27,683 points, respectively. The S&P 500 has added 24%, or $71.3 trillion, in value since March 30, according to trading resource The Kobeissi Letter.
Mosaic Asset Company suggested that cooling expectations of interest-rate hikes from the Federal Reserve in Q4 2026 could further propel markets higher. However, they noted that stock-market breadth remained near its lowest levels in six months, with only 25% of stocks trading above their 50-day simple moving average (SMA).
Bitcoin’s price support hinges on the 21-day simple moving average (SMA) at $83,500. Data from CryptoQuant shows a modest positive correlation between Bitcoin and the S&P 500, currently at 0.51 as of Oct. 2. Keith Alan, cofounder of Material Indicators, highlighted the importance of watching price action around $83,555 and whether buyers can clear the $87,375 invalidation threshold.