Boosted by strong financial reports from U.S. companies, the stock market rose, and the price of Bitcoin (BTC) once reached $83,300, before falling back near the trend line on the 21st.
After the opening of U.S. stocks on Tuesday, as the U.S. stock market rose due to strong financial reports, Bitcoin returned above $83,000.
Key points:
- Driven by some third-quarter financial reports that exceeded expectations, Bitcoin rose as high as 1.5% and followed the upward trend of U.S. stocks.
- Earlier on Tuesday, oil prices rose to $101 per barrel, but then fell by nearly 5% within a few hours, while the stock market strengthened at the same time.
- Bitcoin price trends are attempting to challenge the 21-day simple moving average of $83,230 ( SMA ).
Bitcoin prices fluctuate, driven by U.S. financial reports and changes in oil prices
TradingView data shows that BTC / USD once rose by 1.5%, reaching the highest level since October 14th, before then falling back to around $82,000.
As third-quarter financial reports generally exceeded expectations, the crypto market also rebounded along with the U.S. stock market. General Motors and industrial conglomerate 3M both surpassed profit forecasts, with the latter also raising its profit projections.
Driven by these results, the Dow Jones Industrial Average rose 1.2%, reaching a level not seen since September 14. Meanwhile, as of press time, the S&P 500 Index and the Nasdaq Composite Index, which is dominated by tech stocks, rose 0.6% and 0.5% respectively.
Financial reports helped to mitigate the impact of another rise in oil prices earlier in the day. US WTI crude oil broke through $100 per barrel for the first time since September 17th. However, around the start of trading hours for U.S. stocks, WTI tumbled significantly, returning below $96 per barrel.
Senior economists Interactive Brokers and Jose Torres stated in a report on Monday that the market had already felt the easing sentiment following last week's sell-off in tech stocks, and this round of selling off further spread to the U.S. market on Friday.
He wrote, "As participants removed their hedging positions, the market's sentiment towards the prospects of modern technology improved, and Wall Street heaved a sigh of relief as a result. Previously, before the selling pressure intensified, the cost of volatility protection soared during trading on Friday."
SpaceX is scheduled to release its third-quarter earnings after the close on Tuesday, while Tesla and Meta will announce theirs on Wednesday.
Bitcoin encounters resistance at the 21-day moving average
CoinGlass data shows that Bitcoin has broken through the nearby sell order liquidity barrier, with prices rising to $83,000 at one point. Between 10 a.m. and 11 a.m. Eastern Time in the United States, there was a $125 million short liquidation in the crypto market.
Meanwhile, the total open interest on exchanges rose to $53.86 billion, reaching the highest level since October 8th, with an increase of about 2.1% within 24 hours.
In recent analyses, Material Indicators, co-founder of the cryptocurrency trading platform, and Keith Alan believe that whether the 50-day simple moving average of $81,570 (SMA) can be maintained will be a key indicator to measure overall demand.
He posted on platform X, stating: 'So far, the 50-day moving average has been held several times, indicating that buyers are still protecting this price range.'
Alan pointed out that the $83,230 SMA from the 21st has now become a short-term resistance level.
BTC / USD daily chart, including 21-day and 50-day SMA.
