Analysis: Bitcoin briefly tops $84,000 as Asian equities lose over $800 billion

Bitcoin briefly climbed back above $84,000 on October 13 before retreating as a broad Asian equity sell-off reduced global risk appetite. Bitcoin has held up better than equities but remains closely tied to risk assets. Earlier this month, Bitcoin slipped below $84,000 after reaching the $86,000 to $87,000 range.

South Korea's Kospi fell by as much as 7%. Samsung and SK Hynix shares tumbled 7% to 10%. Japan's Nikkei 225 slipped about 2%. Taiwan's equity indices and other regional indices also declined sharply. Asian equities lost more than $800 billion as the sell-off intensified. Renewed doubts about the artificial intelligence boom triggered the sell-off. Reports of progress by China's ChangXin Memory Technologies on higher-density memory chips raised fears for established rivals.

Investors move money from volatile assets into cash or bonds during periods of risk aversion. Bitcoin often trades in step with stocks during such periods. Forced sales of long positions added pressure as leveraged traders unwound bets. CoinGlass data shows crypto liquidations totaled $812.26 million over the past 24 hours, affecting 169,570 traders. CoinGlass data shows long positions represented about 84.3% of total crypto liquidations, or roughly $685.12 million. CoinGlass data shows Bitcoin accounted for the largest share, with about $193.24 million in liquidations. CoinGlass data shows nearly 74% of Bitcoin liquidations involved long positions.

Bitcoin has support between $80,000 and $82,000. A decisive break below that support range could trigger further liquidations. Bitcoin faces resistance between $84,000 and $87,000. A sustained move above that resistance range could open a path toward $100,000. Macroeconomic events will likely dominate sentiment in the weeks ahead. U.S. inflation data, technology companies' earnings and shifts in Federal Reserve expectations could all move markets. Elevated Treasury yields and oil prices above $100 a barrel continue to weigh on speculative assets.

However, on-chain data offers a more constructive view. Bitcoin supply on exchanges continues to shrink, a trend that could support a rebound if buying demand improves. Spot exchange-traded fund flows have turned positive on some days, providing a degree of institutional support.

Bitcoin could regain momentum if the equity sell-off fades quickly. However, the support zone near $80,000 will face a test if the equity sell-off persists. Traders will watch whether $84,000 becomes reliable support or a level where Bitcoin again fails to sustain gains.