Originally published on: October 20, 2024
In a recent analysis, financial expert Caleb Franzen predicts that Bitcoin is gearing up for a major price breakout as it aims to catch up with US equities. Franzen notes that while the S&P 500 continues to hit record highs, Bitcoin has yet to surpass its 2021 peak, but that could soon change.
Comparing the performance of BTC/USD to the Invesco S&P 500 Equal Weight ETF (RSP), Franzen sees a potential opportunity for traders to go short on RSP and long on BTC. He points to a regression channel that suggests Bitcoin is due for a return to the “blue zone” as it prepares for a breakout.
Franzen’s optimism is further supported by the Williams%R Oscillator, which indicates a trend reversal in favor of Bitcoin. This signal has been historically reliable, with previous occurrences leading to significant gains for BTC/USD over a three-month period.
With Bitcoin currently trading at its highest level since July 2024, investors are growing confident in the cryptocurrency’s potential for further upside, especially as stocks continue to reach new highs.
While Bitcoin faces resistance around $69,000, a breakout above this level could signal a return to price discovery mode. Traders are closely monitoring Bitcoin’s price movements as it attempts to break out of a descending channel that has been in place since March.
Analyst Rekt Capital highlights the significance of Bitcoin’s recent price action, noting that the cryptocurrency has achieved its first Daily Candle Close above a key resistance level.
As Bitcoin prepares for a potential breakout, investors are advised to conduct their own research and consider the risks involved in cryptocurrency trading. Stay tuned for more updates on Bitcoin’s price trajectory and market outlook.
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