Bitcoin (BTC) will “come back into the spotlight,” according to a new analysis, as BTC price gains catch up with U.S. stocks.
Caleb Franzen, founder of financial research resource Cubic Analytics, saw the potential for a surge in the price of BTC in his latest blog post on October 19th.
“Highly Effective” BTC Pricing Tool Calls for Profits
As the S&P 500 repeats its all-time highs, Bitcoin should recover to match the recent performance of U.S. stocks.
The writing may be on the wall for Franzen comparing BTC/USD to the Invesco S&P 500 Equal Weight ETF (RSP).
“Comparatively, Bitcoin generated no new ATH compared to the equally weighted S&P 500. In fact, BTC/RSP was rejected by the ATH exactly before 2021 and has been consolidating since then. “Regressive channel,” he wrote alongside the chart.
“But… BTC/RSP is starting to break above that retracement channel.”
BTC/USD vs RSP 1-week chart. Source: Cubic Analytics
So Franzen saw an option for traders to sell RSP and then BTC.
“Under this framework, the ongoing breakout represents a return to the blue zone,” he added.
“To be clear, that blue zone is still a valid potential resistance, but it is also a price target.”
Franzen reinforced his optimism about the outlook for BTC/USD using the Williams%R Oscillator, a trend strength tool that covers multiple time periods.
In this case, the 120-day repeat is a bounce from the macro lows in July’s “oversold” territory, suggesting further upside is possible in the future.
“As we can see, this signal is rare and very effective,” he concluded.
The same bottom signal occurred in January 2024 and October 2023. In this case, BTC/USD rose 48% and 123% respectively over the next three months.
“With Bitcoin currently trading at its highest price since July 2024, investors are regaining confidence in the potential for continued upside, especially with stocks hitting record highs,” he added.
BTC/USD 1-day chart using Williams%R oscillator data. Source: Cubic Analytics
Excitement of Bitcoin Breakout Is Gathering Speed
As Cointelegraph reported, BTC price predictions are expected to hit new macro highs in 2025, but short-term punts also show continued upside potential.
relevant: 3 Signs Bitcoin’s ‘Parabolic Phase’ With $250,000 Target Is Coming Soon
Final resistance, now boiling below $69,000, stands between spot prices and a return to price discovery. Nonetheless, this resistance has held since March.
The first daily trade has since closed above the downward channel, fueling the bullish narrative.
This weekend, popular trader and analyst Rekt Capital highlighted the significance of the current BTC price movement.
“History was made as Bitcoin registered its first daily candle close above the red resistance zone,” he told X followers along with an explanatory chart.
“Bitcoin will now try to retest this resistance high as a new support level. In general, Bitcoin needs to stay above $66400 (top of the black channel) to enjoy a bullish weekly close.”
BTC/USD 1-day chart. Source: Rekt Capital/X
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.