Bitcoin climbed toward the $85,000 mark on Wednesday as stronger-than-expected SpaceX earnings boosted investor sentiment across US financial markets.
The cryptocurrency gained nearly 2% during the trading session, reaching $84,600 for the first time since October 7. Meanwhile, Wall Street stocks advanced following another round of encouraging corporate earnings.
However, despite the recent recovery, analysts warned that Bitcoin must secure a daily close above a crucial resistance level to sustain its upward momentum.
Bitcoin Price Rises as SpaceX Reports Strong Q3 Earnings
Bitcoin (BTC) moved above $84,000 shortly after Wednesday’s Wall Street opening bell, according to TradingView market data.
The rally coincided with positive reactions to SpaceX’s third-quarter financial results, which significantly exceeded Wall Street expectations.
SpaceX reported quarterly revenue of $14.6 billion, representing a remarkable 161% increase compared with the same period last year. The figure also surpassed analysts’ forecasts by approximately 15%.
Additionally, the company recorded net income of $4.4 billion for the quarter.
SpaceX Chief Financial Officer Bret Johnsen attributed the strong performance to the company’s leadership in space launches, recurring Starlink revenue, and rapid expansion of its Super Intelligence infrastructure.
These developments helped improve investor confidence following renewed concerns about the sustainability of artificial intelligence spending.
US Stocks Advance as Technology Sector Sentiment Improves
US equity markets opened Wednesday’s session in positive territory, supported by optimism surrounding corporate earnings.
The technology-focused Nasdaq Composite initially gained 0.7%, reaching approximately 26,601 points before surrendering part of its advance.
Investors also turned their attention to upcoming quarterly earnings announcements from Tesla and Meta, scheduled for release after Wednesday’s closing bell.
Meanwhile, analysts at Truist Securities suggested that SpaceX’s results could ease concerns about the financial viability of large-scale AI infrastructure investments.
According to commentary cited by CNBC, the company’s quarterly performance provided encouraging evidence supporting the investment outlook for AI cloud providers.
Previously, concerns surrounding AI-related financing had contributed to another technology stock sell-off. The weakness initially emerged in South Korea before spreading across Asian and US markets.
However, Asian equities subsequently recovered. South Korea’s KOSPI Composite Index finished Wednesday’s session 3.29% higher at 5,735 points.
Bitcoin Breaks Above $84,000 as Short Liquidations Accelerate
Bitcoin’s latest advance also triggered increased activity in the cryptocurrency derivatives market.
As BTC moved through the $84,000 region, selling orders and short-position liquidations intensified.
According to CoinGlass data cited during the session, total cryptocurrency short liquidations approached $110 million over a four-hour period.
Furthermore, Bitcoin broke above its 200-period simple moving average (SMA) on the four-hour chart. The indicator stood near $83,878, and the breakout marked the first move above this technical level since October 14.
The $84,000 area had previously acted as an important resistance zone, with several similar price highs recorded between October 11 and October 14.
Consequently, traders are closely monitoring whether Bitcoin can maintain its position above this region or experience another rejection.
Analyst Identifies $83,400 as Bitcoin’s Critical Level
Despite the improving market outlook, cryptocurrency analyst Rekt Capital emphasized that Bitcoin still faces an important technical challenge.
In his Wednesday market analysis, the trader identified $83,400 as a key level that Bitcoin must reclaim on a daily closing basis.
A successful close above this threshold could strengthen the bullish case and shift attention toward the upper boundary of Bitcoin’s recent trading range.
Conversely, failure to hold above $83,400 could renew downward pressure and potentially push BTC below $82,500.
For now, Bitcoin’s recovery toward $85,000 reflects improving risk appetite across financial markets. Nevertheless, its ability to hold recently reclaimed technical levels remains important for determining the next directional move.
