Originally published on: October 20, 2024
Bitcoin is gearing up for a powerful comeback, with its price gains poised to outshine the performance of US equities, according to a recent analysis by Caleb Franzen, the mastermind behind financial research hub Cubic Analytics.
Franzen’s latest blog post on October 19 paints a promising picture for BTC as it aims to match the record-breaking performance of the S&P 500, which is hitting new all-time highs.
Comparing Bitcoin against the Invesco S&P 500 Equal Weight ETF (RSP), Franzen highlighted the potential for a significant price breakout. He pointed out that Bitcoin had failed to reach new all-time highs compared to the equal-weight S&P 500 and was consolidating around previous highs from 2021.
To exemplify his analysis, Franzen shared a chart illustrating the relationship between BTC/USD and RSP, suggesting a potential short position on RSP and a long position on Bitcoin.
Based on his analysis, Franzen sees an impending breakout that could propel Bitcoin back into the blue zone. Supporting his bullish stance, Franzen used the Williams%R Oscillator to gauge trend strength across various timeframes. The indicator’s 120-day iteration signaled further upside potential after rebounding from oversold levels in July.
Franzen’s optimism is echoed in historical data, with similar bottom signals in January 2024 and October 2023 resulting in significant price gains for BTC/USD. With Bitcoin currently trading at its highest levels since July 2024, investors are eyeing the potential for continued upside, especially against the backdrop of all-time highs in the stock market.
As BTC price predictions point towards a new macro high in 2025, short-term projections also align with the bullish sentiment. Despite facing resistance below $69,000, Bitcoin’s recent breakout from a descending channel suggests a bullish trend reversal.
Renowned trader and analyst Rekt Capital noted the historic significance of Bitcoin’s recent price movements, pointing out the first daily candle close above key resistance levels. This milestone further bolsters the optimistic outlook for Bitcoin’s price trajectory.
While this article does not constitute investment advice, it underscores the potential for Bitcoin to shine against the S&P 500 in the upcoming price showdown. Stay tuned for more updates on the evolving cryptocurrency market landscape.