Bitcoin rises to $83,000, stocks and oil swing as US earnings beat forecasts

Stocks rally as earnings surpass expectations

Major US companies reported better-than-expected Q3 results, boosting optimism across financial markets. General Motors and industrial conglomerate 3M both exceeded analysts’ profit estimates, with 3M also raising its annual profit outlook.

The Dow Jones Industrial Average advanced 1.2%, reaching its highest level since September 14. The S&P 500 rose 0.6%, and the technology-heavy Nasdaq Composite gained 0.5% during morning trading.

Strength in corporate earnings outweighed pressure from earlier surges in oil prices. US West Texas Intermediate (WTI) crude futures crossed $100 per barrel for the first time since September 17, but quickly reversed course, dropping almost 5% to trade below $96 as US markets opened.

Interactive Brokers, a global financial services firm, observed a shift in market sentiment following last week’s tech sector downturn that affected broader US markets. Jose Torres, the firm’s senior economist, suggested improved confidence in technology stocks allowed investors to reduce protective hedges, leading to calmer trading conditions.

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.

Investors now await upcoming results from SpaceX, scheduled to report after Tuesday’s market close, followed by Tesla and Meta on Wednesday. All three companies are major players in the US tech landscape, often driving sentiment across risk assets, including cryptocurrencies.

Mini dictionary: Interactive Brokers, headquartered in the United States, is a prominent online brokerage firm serving individual and institutional investors worldwide. The company is known for its comprehensive trading platform and global market access.

Bitcoin volatility as liquidations spike

Bitcoin’s price action mirrored movements in global equities, briefly reaching $83,000 before pulling back toward $82,000. The cryptocurrency tested resistance at its 21-day simple moving average (SMA), recorded at $83,230, while technical analysts followed support at the 50-day SMA near $81,570.

Keith Alan, cofounder of the crypto analysis platform Material Indicators, highlighted the significance of buying pressure in this region. He stated that repeated defenses of the 50-day SMA underscore ongoing demand among market participants. Alan also identified the 21-day SMA as a near-term resistance point to watch.

So far, repeated defenses of the 50-day show that buyers are still protecting this range, while the 21-day SMA presents immediate resistance.

As Bitcoin approached $83,000, data from CoinGlass indicated that $125 million in short positions were liquidated within a single hour between 10 a.m. and 11 a.m. Eastern Time. The surge triggered the highest total open interest on crypto exchanges since October 8, climbing to $53.86 billion in the last 24 hours, a 2.1% increase.

Crypto markets have shown sensitivity to rapid shifts in liquidity and institutional positioning, with recent data underscoring the close connection between digital assets and global financial trends.