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Bitcoin reached $81,687 on Bitstamp on Wednesday, extending an intraday rebound that prevented the asset from printing new lower lows on the hourly chart. The price action coincided with a sharp recovery in global equity markets, particularly in technology sectors that had faced significant pressure earlier in the year.
Equity Markets Drive Crypto Rebound
The movement in Bitcoin aligns with a broader relief rally in risk assets. Mike Wilson, chief US equity strategist at Morgan Stanley, told CNBC that the broader market deserves credit for the current bounce. He noted that nerves over AI spending and debt financing have eased, allowing crypto to strengthen gradually alongside equities.
South Korea’s KOSPI Composite Index closed 6.6% higher on Wednesday, returning above 6,000 points for the first time since October 14. This move places the index’s week-to-date gain at 9.3%. In the United States, the Nasdaq Composite closed up 1.1% on Tuesday, ahead of scheduled earnings reports from Microsoft, Alphabet, Amazon, and Intel. Samsung is also due to report earnings on Thursday.
Key Resistance and Market Structure
Despite the upward momentum, technical resistance remains a focal point for traders. CoinGlass data indicates that bid liquidity is building around $79,000 and $80,000, suggesting that buyers are stepping in to defend the psychological $80,000 level after repeated dips below it. However, resistance near $82,000 has held firm, acting as a ceiling for the current price action.
Crypto analyst Rekt Capital has drawn comparisons between Bitcoin’s current weekly chart structure and the 2022 bear market. He stated that it remains unclear whether Bitcoin can build a new range above the $82,000 resistance level. Rekt Capital noted that the pair has not yet discarded its macro accumulation range, which sits between $60,000 and $80,000. He emphasized that $82,000 is a critical level; a clean break above it could confirm the bullish case, while a rejection would keep the cautious 2022 comparison relevant.
Macro Outlook and Fed Expectations
Morgan Stanley’s Wilson argued that the market has been correcting for four or five months and has digested the pullback efficiently. He sees the technology sector entering a new bullish phase, a view that offers encouragement for risk assets generally, though it represents the opinion of a single strategist.
On the macro front, market participants are expecting the Federal Reserve to hold interest rates at its Wednesday meeting. CME Group’s FedWatch tool shows 90.6% odds of rates staying in the 3.75-4% range. This expectation of monetary policy stability provides a backdrop for the current risk-on sentiment observed in both equity and cryptocurrency markets.
Frequently Asked Questions
What is the current key resistance level for Bitcoin?
Resistance near $82,000 has held firm, and analysts identify this as a critical level that determines whether Bitcoin can build a new range above its recent accumulation zone.
How did South Korea’s stock market perform on Wednesday?
The KOSPI Composite Index closed 6.6% higher, returning above 6,000 points for the first time since October 14, contributing to a week-to-date gain of 9.3%.
