Bitcoin Stalls Near $87,000 as US Stocks Hit New Highs

Bitcoin (BTC) hovered near $86,000 on Tuesday, struggling to break through resistance as US stock markets reached new record highs. The S&P 500 Index gained 0.8% to hit 7,835 points, while the Nasdaq 100 and Nasdaq Composite Index also set new records at 31,312 and 27,683 points, respectively. The Kobeissi Letter noted that the S&P 500 has added 24%, or $71.3 trillion, in value since March 30.

Bitcoin's price action saw repeated attempts to push past $87,000, facing friction from ask liquidity clustered around this level. Data from CoinGlass showed the largest concentration of liquidity at $87,000, with a ladder of asks extending down to $86,500, capping upside momentum. The 21-day simple moving average (SMA) at $83,500 provided key support, according to Keith Alan, cofounder of Material Indicators.

Mosaic Asset Company suggested that cooling expectations of interest-rate hikes from the Federal Reserve in Q4 2026 could further propel stock markets higher. However, they noted that stock-market breadth remained near its lowest levels in six months, with just 25% of stocks trading above their 50-day SMA. Tech companies drove most of the recent gains, with oversold conditions potentially sparking a reversal.

CryptoQuant data showed a modest positive correlation between Bitcoin and the S&P 500, currently at 0.51 as of Oct. 2, the highest since early June. Alan identified $83,500 as crucial support, emphasizing the importance of clearing the $87,375 invalidation threshold for a durable move above $91,540.