Bitcoin dropped nearly 3% on Thursday after an attempt to rally was rejected near the $85,000 level, with price action struggling to stay above support zones observed earlier in the week.
Tesla results add pressure to crypto and equities
Tesla, the electric vehicle manufacturer led by Elon Musk, delivered third-quarter financial results on Wednesday that missed analyst expectations for both revenue and capital expenditure (capex). The company reported Q3 revenue of $28.05 billion, just under the $28.13 billion forecast by Bloomberg, while its capex came in significantly lower at $4.73 billion versus a projected $7.96 billion.
Tesla’s lower-than-anticipated spending raised concerns about the company’s commitment to artificial intelligence initiatives. Ryan Lee, senior vice president of product and strategy at Direxion, remarked that the subdued capex pointed to “less of an ‘all-in’ approach to the AI arms race than one would expect from Elon.”
“I think capex is actually ending up being a little lower than we anticipated, but we’ll start to become more meaningful next year. And then noticeable in the tens of billions in ’28,” CEO Elon Musk stated on the earnings call, according to Bloomberg.
The impact of Tesla’s report was felt across financial markets, with US equities and cryptocurrencies reversing course after the results were released. Upbeat earnings from SpaceX and General Motors earlier in the week had previously lifted both sectors, but the mood quickly shifted following Tesla’s update.
Meanwhile, South Korea’s KOSPI Composite Index, which tracks major listed companies in the country, dropped 3.5% in Thursday’s session after an unsuccessful recovery attempt. This move coincided with continuing weakness since last week’s tech stock sell-off in Asia. At 5,460 points, the KOSPI recently marked its lowest reading since late July.
Mini dictionary: KOSPI Composite Index, the main stock market index representing all common stocks traded on the Korea Exchange.
Bitcoin retraces, open interest soars
After peaking at $84,840 on Bitstamp, Bitcoin quickly gave back its daily gains, drifting toward $81,500 toward the end of Thursday. Data from TradingView indicated that BTC/USD fell below $82,000 as momentum faded, erasing progress from the previous day.
Technical data showed Bitcoin’s price repeatedly failing to break a resistance trend line at $84,840, maintaining a series of lower highs over the short-term. This persistent barrier has limited upside moves in recent trading periods.
Prior to the reversal, open interest (OI) across major crypto trading platforms exceeded $55.9 billion, according to CoinGlass, reaching its highest point since late September. A 4.5% increase in OI over 24 hours amplified volatility and raised concerns about potential long or short cascades in the event of rapid price swings.
On longer three-day charts, the downward-sloping resistance trend has remained intact, with crypto analyst Rekt Capital highlighting the importance of breaking this line to sustain further bullish momentum.
The area between $80,000 and $81,500 has emerged as significant support, as this range reportedly contains the cost basis for US spot Bitcoin ETFs.
Following Thursday’s price action, Bitcoin retained the pattern of lower highs, while traders continued to monitor both technical and macroeconomic developments influencing the market’s next direction.
| Asset | Peak Price | Support Level | Recent Change |
|---|---|---|---|
| Bitcoin | $84,840 | $81,500 | -3% |
| KOSPI Index | n/a | 5,460 | -3.5% |
| Tesla Capex | $7.96 billion (expected) | $4.73 billion (actual) | -40.6% vs. projection |
