According to new analysis, Bitcoin (BTC) is expected to “take the spotlight” as its price gains begin to align with the performance of United States equities.
In a recent blog entry dated Oct. 19, Caleb Franzen, the founder of financial research platform Cubic Analytics, expressed optimism for a significant BTC price breakout.
BTC Price Tool Shows Strong Potential for Gains
Bitcoin must recover to mirror the recent success of US stocks, particularly as the S&P 500 achieves repeated all-time highs.
Franzen, who drew comparisons between BTC/USD and the Invesco S&P 500 Equal Weight ETF (RSP), believes a significant change is on the horizon.
“Relative to the equal-weight S&P 500, Bitcoin has struggled to reach new all-time highs. Indeed, BTC/RSP faced rejection right at the previous all-time highs from 2021 and has been consolidating since, as demonstrated in my regression channel,” he noted while providing a relevant chart.
“Yet… BTC/RSP is beginning to break above that regression channel.”
BTC/USD compared with RSP 1-week chart. Source: Cubic Analytics
Franzen thus suggested that traders might consider going short on RSP while going long on BTC.
“In light of this structure, the ongoing breakout indicates a potential return to the blue zone,” he added.
“To clarify, that blue zone signifies potential resistance, but it also serves as a price target.”
He further strengthened his positive outlook for BTC/USD using the Williams%R Oscillator, a trend strength tool applicable across various timeframes.
In this instance, its 120-day version indicates possible further gains, having bounced back from macro lows in its “oversold” territory in July.
“As evidenced, this signal is both infrequent and significantly effective,” he concluded.
Similar bottom signals emerged in January 2024 and October 2023, with BTC/USD climbing 48% and 123%, respectively, over the following three-month spans.
“With Bitcoin trading at its peak prices since July 2024, investors are regaining optimism regarding the potential for ongoing growth, especially with stocks hitting all-time highs,” the post indicated.
BTC/USD 1-day chart featuring Williams%R Oscillator data. Source: Cubic Analytics
Growing Excitement for a Bitcoin Breakout
As reported by Cointelegraph, predictions for BTC prices suggest reaching a new macro high in 2025, with short-term forecasts also indicating continued upside.
Related: Three Indicators That Bitcoin’s ‘Parabolic Phase’ with a $250K Target is About to Commence
Currently hovering below $69,000, the final resistance stands between the current price and a return to price discovery—resistance that has remained since March.
The initial daily closes above a descending channel established since then have bolstered the bullish sentiment.
This weekend, popular trader and analyst Rekt Capital emphasized the importance of the recent BTC price movements.
“A milestone has been reached as Bitcoin has made its first Daily Candle Close above the red resistance area,” he mentioned to his followers on X, sharing an illustrative chart.
“Bitcoin will now attempt to retest the peak of this resistance into a new support level. In general, Bitcoin needs to hold above $66,400 (black Channel Top) to secure a bullish Weekly Close.”
BTC/USD 1-day chart. Source: Rekt Capital/X
This article does not offer investment advice or recommendations. Every investment and trading action involves risk, and readers should conduct their own research before making any decisions.
