Crypto CasinosNewsBitcoin's Potential for Further Upside: Decoupling from Stock Market and Historic Performance
A crypto analyst believes that Bitcoin (BTC) still has room to grow, even after its impressive rallies this month. The analyst, known as Kaleo, points to Bitcoin's relative performance against the S&P 500 Index (SPX) as evidence that BTC has decoupled from the stock market. This suggests that BTC has the potential for further upward movement.
Kaleo highlights BTC's historic performance against the SPX as a key factor in predicting its future movement. Based on this analysis, Kaleo suggests that BTC could reach the next main resistance supply area of $40,000. The analyst notes that BTC has shown a bullish decoupling from equities, which has been eagerly anticipated by many.
Kaleo points out that the solid white line representing the 2017 ratio all-time high (ATH) has played a significant role in BTC price action over the years. It has served as a baseline support level during the 2021/2022 bull market and as a pivot point for momentum shifts. With this level now cleared, there are no major resistance levels until the price at which BTC sold off due to the LUNA/UST crash, which correlates to approximately $40,000.
While Kaleo is currently bullish on Bitcoin, the analyst acknowledges the possibility of a downside crash similar to the one experienced in March 2020. To mitigate risk, Kaleo suggests focusing on a longer time horizon, specifically the 2024-2025 market top. The analyst emphasizes the importance of stacking spot positions and being prepared for any market fluctuations.
In conclusion, Kaleo believes that Bitcoin still has the potential for further upside despite recent rallies. The analyst points to BTC's decoupling from the stock market and its historic performance against the SPX as indicators of this potential. However, Kaleo also acknowledges the need to be prepared for potential downside risks and recommends taking a longer-term perspective. Overall, the outlook for Bitcoin remains positive, with clear skies ahead until the $40,000 resistance level.
