Bitcoin price rises with US stocks on strong Q3 earnings

Bitcoin's price briefly touched $83,000 on Tuesday, coinciding with the opening of Wall Street and gains in U.S. equities. This increase of up to 1.5% for the cryptocurrency mirrored the upward trend in U.S. stocks, which were boosted by stronger-than-expected third-quarter earnings reports. Simultaneously, oil prices, after an earlier surge, declined significantly as equity markets advanced.

TradingView data showed BTC/USD appreciating by 1.5%, reaching its highest point since October 14, before settling near $82,000. The crypto rally was in sync with U.S. stock markets, as Q3 earnings from companies like General Motors and 3M surpassed forecasts, with 3M also revising its profit outlook upwards. To facilitate trading, many investors utilize various crypto exchanges, which offer platforms for buying and selling digital assets.

Consequently, the Dow Jones Industrial Average climbed by 1.2%, reaching levels last seen on September 14. The S&P 500 and the Nasdaq Composite Index also experienced increases of 0.6% and 0.5%, respectively. These positive earnings helped offset an earlier spike in oil prices, which saw U.S. WTI crude briefly exceed $100 per barrel before sharply declining below $96 at the start of the U.S. trading session. Markets had anticipated relief after a tech-focused sell-off the prior week.

Bitcoin‘s rise to $83,000 involved breaking through a substantial amount of ask liquidity, according to CoinGlass data. Crypto markets recorded $125 million in short liquidations between 10 a.m. and 11 a.m. ET. Total open interest across exchanges reached $53.86 billion, its highest since October 8, marking a 2.1% increase over 24 hours.

Keith Alan, co-founder of Material Indicators, highlighted the defense of the 50-day simple moving average (SMA) at $81,570 as a crucial indicator of demand, suggesting active buyer protection. Alan also noted that the 21-day SMA at $83,230 was acting as a low-time frame resistance level for Bitcoin's price.