[DigitalToday reporter Yoonseo Lee] Bitcoin is trading near $86,000 and is trying to break back above $87,000.

On Oct. 6 (local time), blockchain media outlet Cointelegraph reported that as major U.S. stock indexes hit record highs, Bitcoin failed to extend gains after running into sell orders piled up on exchanges.

According to TradingView data, BTC/USD moved around $86,000 on the day and tried to regain $87,000. After failing to break higher the previous day, upside momentum was limited again.

Markets, meanwhile, focused on stock moves after the U.S. market open. The S&P 500 rose to 7,835, the Nasdaq 100 to 31,312 and the Nasdaq Composite to 27,683, each marking record highs.

The rally in stocks was attributed to easing expectations for Federal Reserve rate hikes in the fourth quarter of 2026. Mosaic Asset said shifting views around the Fed and a slower pace of rate increases could act as a catalyst for a sustained rally. It added that gains concentrated in some large technology stocks remained a burden.

Mosaic Asset also pointed out that last week only 25 percent of S&P 500 components traded above their 50-day simple moving average. It said a similar widening in oversold conditions occurred once more this year, and it served as a trigger for a rebound at the time.

Bitcoin’s co-movement with U.S. stocks has also risen again. According to CryptoQuant data, the correlation coefficient between Bitcoin and the S&P 500 was 0.51 as of Oct. 2, the highest level since early June. While stock strength is supporting sentiment in the digital asset market, Bitcoin’s own supply-demand structure is separately keeping a lid on the upside.

In fact, the biggest factor for short-term price action is the supply zone near $87,000. CoinGlass data showed the largest liquidity cluster on the day was near $87,000. Sell orders were stacked in stepwise fashion up to $86,500, weighing on upside moves. As waiting supply thickens as prices rise, some see a break higher requiring strong buying in the short term.

Support on the downside was cited near $83,500. Keith Alan (키스 앨런), co-founder of cryptocurrency trading platform Material Indicators, recently presented the $83,500 area, where Bitcoin’s 21-day simple moving average sits, as a key support zone. In an Oct. 1 analysis, he said he was watching price action near $83,555, the structure of a test of support at $82,500, and whether buying could push beyond the invalidation zone at $87,375 for a monthly signal.

In the market, a tug of war appears to be continuing between a recovery in risk appetite in U.S. stocks and Bitcoin’s spot supply zone. As a result, whether Bitcoin breaks resistance at $87,000 and holds support at $83,500 has emerged as a key focus in the short term.

$BTC price is being forced into a decision zone. ⚠️ $86.5k continues to serve as structural resistance. 15 minute trend support at $86.1k 4 hour trend support at $85.5k Daily trend support at $83.5k where the 21-Day SMA has confluence with the Q4 Timescape R/S Flip Line Macro Support at $77.2k where the 50-Week SMA has confluence with the Macro Trend Line.