Bitcoin Bounces Back Against Stocks Under $84,200 Barrier

Bitcoin surged back above the $83,000 mark during Tuesday’s upturn in U.S. equities but later dipped toward $82,600, coinciding with declining oil prices that bolstered risk assets.

According to CoinGecko, Bitcoin was recorded at $82,601.56 in the latest update, reflecting a 0.8% gain over the past 24 hours, with a trading range of $81,155.23 to $83,249.46. This indicates that the cryptocurrency remains below its session high after buyers managed to recover some of the previous losses.

Ether also saw growth, with CoinGecko reporting ETH at $2,437.55, marking a 1.6% increase within the same day. Its trading range was noted between $2,374.52 and $2,471.63, placing the second-largest cryptocurrency under its peak for the day.

U.S. stock market rallies as oil prices drop

The S&P 500 index climbed 0.70% to 7,744.72 during the morning session on Tuesday, while the Nasdaq Composite increased by 0.59% to 26,585.47. Healthcare stocks surged to new highs alongside falling oil prices, helping to recover shares impacted by recent technology sector sell-offs.

This uptick in the stock market followed a rebound on Monday, where investors capitalized on technology shares after concerns regarding CoreWeave’s debt and the costs associated with financing artificial intelligence infrastructure had previously dampened the sector, as reported by news outlets.

MarketWatch listed a 1.3% rise in Bitcoin post an intraday drop of up to 0.9%. The site also highlighted over 400 companies in the S&P 500 saw increases, buoyed by hopes for peace talks amidst the oil price decline.

In a Monday analysis, Zaye Capital Markets expert Naeem Aslam linked Bitcoin’s recovery to improved liquidity expectations and diminishing apprehensions regarding an imminent rate hike from the Federal Reserve. Barron’s echoed his sentiments, suggesting that the rally had not yet signified a lasting recovery.

Aslam cautioned that persistent inflation, stringent borrowing conditions, and uncertainty around monetary policy were still impacting the demand for risk-sensitive investments.

Bitcoin yet to surpass $84,200 resistance

Prior to Tuesday’s rise, crypto.news had noted that trader Ardi marked $84,200 as a key level for Bitcoin to breach in order to escape its current bearish trend, as articulated in an assessment dated October 16.

This trader’s observations came after a bounce back from a weekly low near $79,800. At that time, Bitcoin was close to its 50-day moving average, which stood at $81,279 on the daily chart.

Ardi mentioned considering long positions as Bitcoin approached the upper limit of its trading range following a breach of his specified resistance level. He indicated that this would require a break above the recent trend of lower highs.

When gauged against CoinGecko’s noted daily high of $83,249.46, Ardi’s $84,200 mark is $950.54 higher—representing a 1.14% difference. From the later figure of $82,601.56, attaining this point would require a 1.94% increase. This analysis compares historical resistance levels set by analysts with current prices, without guaranteeing these levels will hold or be reached by Bitcoin.

The October 16 report also referenced a CoinGlass one-week liquidation heatmap, indicating areas of potential liquidations around $83,300–$83,700 and $84,300–$84,700; these were based on historical estimates rather than confirmed liquidations during Tuesday’s rise.

Earlier, an assessment from October 9 positioned Binance’s daily chart price at $83,012 and the weekly low at $80,394. The daily Supertrend indicator was logged at $79,663.52, while the weekly chart remained above the top of a falling wedge.

This earlier report also highlighted a bearish crossover in the daily MACD, with readings of 1,172 below the signal line at 1,709.23. Both metrics remained above zero in that snapshot.

Glassnode observes diminished selling pressure prior to the bounce

Glassnode’s Market Pulse report from October 19 described a scenario where the heavy selling that characterized the early October decline had subsided without an equivalent surge in demand.

“The significant selling behind that decline has diminished, yet new demand has not emerged.”

For the week ending October 18, the firm noted that perpetual futures traders remained net sellers, although this selling activity had lessened. ETF outflows were recorded at around $230 million, and trading volume for ETFs had fallen below the report’s lower threshold.

Spot trading continued to exhibit aggressive selling tendencies, with Glassnode revealing a cumulative volume delta of negative $83.6 million, compared to negative $67 million from the previous week.

Options traders were still investing in downside protection, with the 25-delta skew rising and implied volatility surpassing realized volatility. Additionally, on-chain fees and transaction volume each decreased by roughly 10%, while the number of active addresses remained stable.

October predictions reliant on demand and support levels

In comments from October 1 regarding Bitcoin’s prospects for the month, ViaBTC’s chief analyst Jeff Ko and Lacie Zhang from Bitget Wallet identified $82,000 as a pivotal support level.

Zhang indicated that the core downside risk zone lay between $82,000 and $82,500, cautioning that failing to hold this level could precipitate a drop towards $80,000. She speculated that her forecast depended significantly on institutional purchases absorbing sales from long-term holders and miners.

The researcher proposed an October trading range of $78,000–$95,000, with a recovery above $87,500 required to support a bullish outlook. Conversely, a sustained decline below $80,000 would negate her seasonal prediction, according to her analysis.

Ko also recalled a prior rally exceeding 2% after the release of Personal Consumption Expenditures inflation data, which temporarily lifted Bitcoin above $85,500 before those gains were erased. Zhang noted that high oil prices, steep interest rates, and renewed inflationary pressures continued to pose challenges to her October outlook.