Bitcoin Stalls Near $87K as US Stocks Hit Fresh Records

Bitcoin hovered around $86,000 on Tuesday, unable to sustain momentum toward the $87,000 mark. Traders noted friction in the order book near this key level, highlighting how liquidity clusters can influence price action as much as broader market trends. Meanwhile, US equities reached new all-time highs, with the S&P 500 climbing 0.8% to 7,835 points, while the Nasdaq 100 and Nasdaq Composite also set records.

Data from CoinGlass showed significant ask liquidity concentrated around $87,000, with a stepped structure of orders extending down to roughly $86,500. This liquidity wall acted as resistance, slowing Bitcoin's upward movement. On the downside, support was identified near the 21-day simple moving average (SMA) at $83,500, a level last traded on September 18.

The correlation between Bitcoin and the S&P 500 strengthened, reaching 0.51 as of October 2, the highest since early June. This suggests a close link between macro liquidity and both markets. However, even with strong equity performance, Bitcoin's ability to break higher remained constrained by the liquidity pocket near $87,000.

Analysts like Keith Alan of Material Indicators emphasized key technical levels, including a Monthly signal invalidation threshold at $87,375 and a Yearly Open at $87,496. These levels could determine whether Bitcoin continues its rangebound trading or breaks out higher. With US equities still trading at record highs, traders will watch for follow-through above $87,375 and whether $83,500 holds as support.