Bitcoin Poised For Major Breakout As Price Gains Catch Up With US Equities

According to Cointelegraph, Bitcoin (BTC) is expected to regain prominence as its price gains align with the performance of United States equities. Caleb Franzen, the creator of financial research resource Cubic Analytics, highlighted the potential for a significant BTC price breakout in his latest blog post on October 19. Franzen noted that Bitcoin needs to recover to match the recent performance of US stocks, particularly as the S&P 500 continues to hit new all-time highs. By comparing BTC/USD to the Invesco S&P 500 Equal Weight ETF (RSP), Franzen observed that Bitcoin has not produced new all-time highs relative to the equal-weight S&P 500. Instead, BTC/RSP was rejected at its previous all-time highs from 2021 and has been consolidating since then. However, Franzen pointed out that BTC/RSP is beginning to break above its regression channel, indicating a potential breakout. Franzen suggested that traders could consider going short on RSP and long on BTC based on this structure. He explained that the ongoing breakout implies a return to a specific price zone, which could serve as both potential resistance and a price target. Franzen's optimism is further supported by the Williams%R Oscillator, a trend strength tool that indicates further upside potential for BTC/USD. The oscillator's 120-day iteration rebounded from macro lows in its oversold zone in July, signaling a rare and highly effective bottom signal. Historical data shows that similar bottom signals in January 2024 and October 2023 resulted in BTC/USD gains of 48% and 123%, respectively, over the subsequent three-month period. With Bitcoin currently trading at its highest prices since July 2024, investor confidence in continued upside potential is growing, especially with stocks at all-time highs. As previously reported by Cointelegraph, BTC price predictions favor a new macro high in 2025, with short-term forecasts also indicating continued upside. Bitcoin is currently simmering below $69,000, with final resistance standing between the spot price and a return to price discovery. This resistance has held since March, but recent daily closes above a descending channel are fueling a bullish narrative. Popular trader and analyst Rekt Capital emphasized the significance of current BTC price movements, noting that Bitcoin has registered its first daily candle close above a key resistance area. He suggested that Bitcoin needs to stay above $66,400 to maintain a bullish weekly close, potentially retesting the top of the resistance as new support. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.