Bitcoin Price Faces 2021 High Challenge as S&P 500 Competition Heats Up

Bitcoin is set to “regain the spotlight” as its price growth catches up to U.S. equities, according to new analysis.

In an Oct. 19 blog post, Caleb Franzen, creator of Cubic Analytics, highlighted the potential for a major Bitcoin breakout.

“Highly effective” BTC price tool demands gains

Bitcoin needs to bounce back to match the recent performance of U.S. stocks, with the S&P 500 hitting fresh all-time highs.

Franzen compared BTC/USD to the Invesco S&P 500 Equal Weight ETF (RSP) and pointed out that Bitcoin has struggled to reach new highs against the index since 2021.

“Bitcoin failed to produce new all-time highs vs. the equal-weight S&P 500, and it’s been consolidating since,” he explained, but noted a shift. “BTC/RSP is starting to break above the regression channel.”

Franzen suggested traders could consider going short on RSP and long on Bitcoin. He highlighted the potential for gains using a key trend tool, the Williams%R Oscillator, which points to further upside.

“This signal is both rare & highly effective,” Franzen noted, with previous occurrences leading to significant BTC price increases.

Bitcoin breakout excitement gathers pace

Predictions for Bitcoin suggest a macro high in 2025, though short-term analysis also sees upside. As BTC edges near $69,000, final resistance could soon break, allowing for further price discovery.

Popular analyst Rekt Capital commented, noting “Bitcoin has registered its first daily close above key resistance,” indicating a possible bullish continuation.

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