Bitcoin broke above the $84,000 mark on Wednesday evening, but then pulled back to the $82,500 support level that analysts are closely watching as tech stock futures declined.
As of early Thursday Asian trading hours, Bitcoin was roughly flat, trading just below $82,800. Earlier, Bitcoin had surged to nearly $85,000 on Wednesday evening before giving back those gains.
Mixed earnings results from Tesla and Meta dragged Nasdaq index futures lower, reigniting questions about the artificial intelligence (AI) investment boom.
Among major cryptocurrencies, ZEC was the only standout gainer, rising nearly 3% to around $1,290, while XRP gained less than 1%. HYPE was the weakest performer, falling 3% to about $79. Dogecoin (DOGE) dropped 2%, SOL declined about 1%, and Ether, BNB, and TRX each fell less than 1%.
Bitcoin's breakout did not last long. On Wednesday evening, Bitcoin broke through the $84,000 level, a price point that had twice prevented further gains on October 13 and 14. Bitcoin then reached a high of around $84,800. But within roughly six hours, Bitcoin fell more than $2,000 to around $82,600. For investors who chased the rally, it was a difficult night. This has left Bitcoin hovering near $82,500. Some market observers warn that if this support level is decisively broken, Bitcoin could fall further to $70,000.
Large tech stocks also failed to provide support. Tesla Motors (TSLA) fell 3% in after-hours trading after cutting its capital expenditure forecast, while chip equipment maker Lam Research dropped 7% on weak guidance. Meta rose 2% after raising its AI spending plans, but that was not enough to lift market sentiment. Nasdaq 100 index futures fell 1.1%, and S&P 500 futures dropped 0.5%.
Asian markets were clearly hit. South Korea's Kospi fell 2.2% as Samsung Electronics and SK Hynix shares retreated. Meanwhile, escalating tensions in the Middle East pushed crude oil prices higher.
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