A closely watched crypto strategist says a bullish pattern is emerging for Bitcoin (BTC) against the S&P 500 (SPX).
Pseudonymous analyst Kaleo tells According to its 596,500 followers on social media platform X, Bitcoin is starting to form a breakout pattern against the SPX that historically precedes an uptrend.
“What gives me a little more confidence that we’ll see some follow-through is this chart here: BTCUSD/US500. If you’re feeling a little more aggressive, I think that will give you a little more confidence when you watch it.
If we look at these diagonals over the last year, all of 2023, when we’ve had a breakout of this big downtrend for BTC versus the S&P 500… every time we’ve had one of these big downtrend breaks on the diagonal , we’ve seen a pretty decent follow-up, quite a momentum move.
The trader is keeping a close eye on whether the crypto king can definitively enter the $28,000 range, which he believes would confirm BTC’s bullish momentum.
“What we have to be a little more careful about now is that we haven’t necessarily seen that pure, straight green candle higher right away here. But then again, you go back to some of these pimples earlier… IIt wasn’t as clear as what it looks like when you look at the four hours [chart]… A little bit higher, followed by just continuing after that…
I’m in the camp where I think this will continue higher. I think we have the breakthrough we are looking for. If you really want to be a bit more cautious, I think you’ll want to look for $28,000 as far as the USD price is concerned, but if you’re just looking at BTC versus stocks, I think there’s a decent opportunity to really buy into this hopium. ”
Bitcoin is trading at $27,561 at the time of writing, down 1.5% in the past 24 hours.
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Generated image: Midjourney
