Bitcoin price spikes to $83.3K as US stocks rise on Q3 earnings, oil falls

Bitcoin (BTC) returned to $83,000 after Tuesday’s Wall Street open as US stocks gained on strong earnings reports.

Key points:

• Bitcoin gained up to 1.5%, joining upside in US stocks on the back of some higher-than-expected Q3 earnings results.
• Oil prices hit $101 per barrel early on Tuesday before dropping nearly 5% in hours as equities gained.
• BTC price action sought to challenge the 21-day simple moving average (SMA) at $83,230.

BTC price swings as US earnings, oil moves drive markets

Data from TradingView showed BTC/USD gaining 1.5% to reach its highest levels since Oct. 14 before dropping back toward $82,000.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Crypto joined US stock markets in rallying as Q3 earnings reports beat expectations. Both General Motors and industrial conglomerate 3M beat earnings expectations, while the latter also increased its profit forecast.

The Dow Jones Industrial Average gained 1.2% on the back of the results to hit levels last seen on Sept. 14. Meanwhile, the S&P 500 and tech-heavy Nasdaq Composite Index traded up 0.6% and 0.5% at the time of writing.

Dow Jones Industrial Average one-day chart. Source: Cointelegraph/TradingView

Earnings helped mitigate the impact of a fresh oil-price uptick earlier in the day, which saw US WTI crude pass $100 per barrel for the first time since Sept. 17. However, WTI fell precipitously around the start of the US trading session to trade below $96.

CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView

In a note on Monday, Jose Torres, senior economist at Interactive Brokers, already saw markets sensing relief after last week’s tech-focused sell-off, which spread to US markets by Friday.

“Improving moods regarding the prospects of modern technology have Wall Street breathing a sigh of relief as participants drop hedges, after the cost of volatility protection soared intraday on Friday, ahead of the intensifying selloff,” he wrote.

SpaceX is due to report Q3 performance figures after the market close on Tuesday, with Tesla and Meta due on Wednesday. 

Bitcoin rejected at 21-day moving average

Bitcoin broke through a nearby wall of ask liquidity with its trip to $83,000, data from CoinGlass showed. Crypto markets saw $125 million in short liquidations between 10 a.m. and 11 a.m. ET.

Related: XRP 30-day exchange inflows pass 6B tokens as whales move to the sidelines

BTC liquidation heatmap. Source: CoinGlass

At the same time, total open interest on exchanges hit its highest levels since Oct. 8 at $53.86 billion, gaining around 2.1% in 24 hours.

In recent analysis, Keith Alan, cofounder of crypto trading platform Material Indicators, argued that a defense of the 50-day SMA at $81,570 would be a key indicator of overall demand.

“So far, repeated defenses of the 50-Day show that buyers are still protecting this range,” he commented in a post on X.

Alan noted that the 21-day SMA at $83,230 was now acting as low-time frame resistance.

BTC/USD one-day chart with 21, 50 SMA. Source: Cointelegraph/TradingView