Bitcoin traded at $84,186 in early trading today, up 1.39% over 24 hours, while Ethereum reclaimed $2,470. U.S. stocks, led by the Dow, continued their upward trend, with SpaceX’s performance boosting the Nasdaq to a 1% gain. The fear and greed index rose back to 68, returning to the “greed” territory.
Bitcoin Holds Above $84,000, Ethereum Nears $2,500
Bitcoin was trading at $84,186 in early trading today, marking a 1.39% increase over the past 24 hours and maintaining its position above the $84,000 mark. The cryptocurrency reached an intraday high of $84,898 and, after a brief dip to $82,635, quickly recovered. Ethereum also saw gains, trading at $2,474 with a 0.84% increase, reclaiming the $2,470 level, though the $2,500 resistance remains to be tested. Following a broader market rebound in cryptocurrencies alongside U.S. stocks over the past two days, market sentiment further improved today, with the fear and greed index climbing to 68, re-entering the “greed” zone.
U.S. Stocks Extend Gains, Fueled by Tech and Aerospace
U.S. stocks continued their rebound on Wednesday, with all four major indices closing in positive territory. The Dow Jones Industrial Average rose 360.21 points (0.69%) to close at 52,856, marking its third consecutive day of gains. The S&P 500 gained 0.58% to close at 7,757. The Nasdaq Composite climbed 1.05% to 26,703, buoyed by strong third-quarter earnings from SpaceX and anticipation surrounding Tesla’s upcoming financial report.
Macroeconomic Factors and Sector Rotation
On the macroeconomic front, SpaceX’s third-quarter revenue significantly exceeded expectations, driving gains in aerospace and space-related stocks. IBM and Super Micro Computer also raised their operational outlooks, contributing to optimism in the tech sector. However, futures markets saw a slight pullback after Meta and Tesla released their quarterly reports after the market close, introducing some uncertainty for Thursday’s opening. In terms of fund flows, the rotation away from AI-related themes continues, with healthcare and value stocks outperforming large-cap tech. Nevertheless, Bitcoin spot ETFs have maintained net inflows for two consecutive days, indicating sustained institutional buying interest.
Altcoins Show Mixed Performance
Major altcoins followed Bitcoin’s upward trend. XRP was a standout performer, rising nearly 2% over 24 hours to trade at $1.3636, reaching an intraday high of $1.3992. Solana saw a modest 0.6% increase, trading at $107.25 and consolidating within the $105-$110 range. Ethereum’s price is currently in the middle of its recent trading range, with its 14-day high at $2,579 (October 8) and its low at $2,336 (October 19).
Bitcoin Technical Analysis
Based on its closing price of $84,093 on October 21, Bitcoin’s 14-day Relative Strength Index (RSI) stands at 56.8, indicating a slightly bullish trend. The closing price is above the 20-day Simple Moving Average (SMA20) at $83,241, the SMA50 at $81,743, and the SMA200 at $72,774. The Moving Average Convergence Divergence (MACD) remains in bearish territory, but the histogram is narrowing, suggesting weakening momentum. The price is trading above the Bollinger Band’s middle line ($83,241) but below the upper band ($86,213). The 30-day price range is between $79,800 (October 15) and $87,279 (September 23). Key resistance levels are the Bollinger upper band at $86,213 and the 30-day high at $87,279. Support levels include the SMA20 at $83,241, the SMA50 at $81,743, and the Bollinger lower band at $80,269.
Ethereum Technical Analysis
With a closing price of $2,474 on October 21, Ethereum’s 14-day RSI is at 46.0, indicating a neutral stance. The closing price is below the SMA20 ($2,522) and SMA50 ($2,552) but above the SMA200 ($2,154). The MACD is in bearish territory, with a narrowing histogram suggesting reduced momentum. The price is trading below the Bollinger Band’s middle line ($2,522). Key resistance levels are the SMA20 at $2,522, the SMA50 at $2,552, and the Bollinger upper band at $2,743. Support levels include the 30-day low at $2,318, the Bollinger lower band at $2,302, and the SMA200 at $2,154.
Market Sentiment Returns to Greed
The Alternative.me Fear and Greed Index registered 68 today, a 5-point increase from yesterday’s 63, signaling a return to the “greed” zone. Over the past eight days, the index has fluctuated between 53 and 68, with today’s reading at the upper end of that range. Sustained net inflows into Bitcoin spot ETFs, the ongoing U.S. stock market rebound, and receding bearish sentiment are all contributing to positive market psychology. In the short term, attention will be on the continued performance of U.S. corporate earnings reports and the impact of Meta and Tesla’s quarterly results on risk assets later today.
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