Bitcoin Eyes Rematch with 2021 Record High Against S&P 500

Bitcoin is on the verge of reclaiming its spotlight as it gains momentum, potentially rivaling the performance of U.S. stocks. According to a recent analysis, BTC is primed for a significant breakout as it catches up with the S&P 500.

In his latest blog post, Caleb Franzen, the founder of Cubic Analytics, highlighted the potential for a major Bitcoin price surge. Comparing BTC/USD to the Invesco S&P 500 Equal Weight ETF (RSP), Franzen noted that while Bitcoin hasn't yet matched the all-time highs seen by U.S. equities, the conditions are ripe for a breakout.

Powerful Price Indicators Signal BTC Gains

Franzen pointed to the Williams %R Oscillator, a trend strength tool, as a key indicator suggesting further upside for Bitcoin. The 120-day iteration of the Williams %R has rebounded from its "oversold" zone, mirroring similar signals from January and October 2023, both of which led to substantial BTC gains of 48% and 123%, respectively, over a three-month period.

This bullish signal has investors hopeful that Bitcoin will continue its upward momentum, especially as it reaches its highest trading levels since July 2024.

Bitcoin Poised for Breakout

Bitcoin’s current price movement suggests that a significant breakout could be imminent. With the cryptocurrency now trading near $69,000, the final resistance standing between Bitcoin and a return to price discovery is being tested. Since March, Bitcoin has faced resistance in breaking past this level, but recent daily closes above a descending channel have fueled optimism.

Popular trader and analyst Rekt Capital emphasized the importance of these developments, noting that Bitcoin has registered its first daily close above the key red resistance zone, marking a historic moment that could pave the way for further gains.

As excitement builds, market participants are eyeing the possibility of Bitcoin achieving new all-time highs, with predictions pointing toward a major macro high in 2025. The stage is set for Bitcoin to potentially outpace U.S. equities once again.