Bitcoin Nears $87K as US Stock Markets Hit New Highs

Bitcoin (BTC) hovered around $86,000 on Tuesday as US stock markets hit fresh record highs. The cryptocurrency faced resistance near $87,000 due to significant ask liquidity concentrated at this level. Meanwhile, the S&P 500 Index rose 0.8% to reach 7,835 points, marking another all-time high.

The 21-day simple moving average (SMA) for Bitcoin stood at $83,500, serving as a key support level. Despite attempts to push higher, Bitcoin remained rangebound, mirroring the behavior of major US stock indices. The S&P 500, Nasdaq 100, and Nasdaq Composite Index all reached new record highs of 7,835, 31,312, and 27,683 points, respectively.

Analysts noted that the S&P 500 had gained 24%, or $71.3 trillion, in value since March 30. Mosaic Asset Company suggested that cooling expectations of interest-rate hikes from the Federal Reserve in Q4 2026 could further propel markets higher. However, stock-market breadth remained near its lowest levels in six months, with just 25% of stocks trading above their 50-day SMA.

Onchain analytics platform CryptoQuant showed a modest positive correlation between Bitcoin and the S&P 500, currently at 0.51 as of October 2. Bitcoin's price action continued to face overhead resistance near range highs, with the largest concentration of liquidity around $87,000. Support was identified at $83,500, the current 21-day SMA, last traded on September 18.