Bitcoin eyes potential breakout as it approaches $69,000 mark

Bitcoin’s (CRYPTO:BTC) price is nearing a significant breakout, potentially matching its 2021 record highs against the SP 500, according to new analysis.

Caleb Franzen, founder of Cubic Analytics, highlighted that Bitcoin’s recent price movements suggest it could soon reclaim the spotlight as it catches up to U.S. equities.

In his latest blog post, Franzen analysed the BTC/USD price compared to the Invesco SP 500 Equal Weight ETF (RSP).

He pointed out that while Bitcoin has yet to hit new all-time highs against the SP 500 since 2021, current movements indicate a change.

"BTC/RSP is starting to break above that regression channel," Franzen explained, adding that the ongoing breakout signals a potential price surge for Bitcoin.

Franzen suggested traders could consider a strategy of going short on the SP 500 while going long on Bitcoin, as the charts indicate the next target zone.

He also emphasised the importance of the Williams%R Oscillator, a trend strength tool that has effectively predicted price rises.

This tool rebounded from its "oversold" zone in July 2024, which historically has signaled significant price gains.

Previous signals in October 2023 and January 2024 led to price increases of 123% and 48%, respectively, over the following three months.

As Bitcoin currently trades around $69,000, market sentiment is becoming more bullish, particularly with U.S. stock markets hitting all-time highs.

Popular traders, including Rekt Capital, also pointed to Bitcoin’s first daily close above a key resistance area, further fueling optimism.

"Bitcoin just needs to stay above $66,400 to enjoy a bullish weekly close," Rekt Capital noted.

At the time of writing, the Bitcoin price was $69,268.25.