A closely followed crypto strategist says a bullish pattern is taking shape for Bitcoin (BTC) against the S&P 500 (SPX).
Pseudonymous analyst Kaleo tells his 596,500 followers on the social media platform X that Bitcoin is starting to form a breakout pattern against the SPX that historically precedes an upward trend.
“Now, what gives me a little bit more confidence we’re going to see some follow through is this chart right here: BTCUSD/US500. If you are feeling a little bit more aggressive, I do think that this gives you a little bit more confidence looking into it.
When we’re looking at these diagonals for the past year, all of 2023 when we have had a breakout of this major downtrend for BTC versus the S&P 500… every time that we’ve gotten one of these major downtrend breaks on the diagonal, we’ve seen a pretty decent follow through, a decent impulse move.”
The trader is closely watching whether the crypto king can decisively enter the $28,000 range, which he says would confirm BTC’s bullish momentum.
“The thing to be a little bit more cautious of right now: we haven’t necessarily seen that pure straight green candle higher immediately right here. But again, you go back to a bunch of these breakouts previously… It wasn’t as straight up as what it looks like whenever you’re looking at the four-hour [chart]… A little bit of a grind higher followed by just continuation after that…
I’m in the camp where I think this continues higher. I think that we have the breakout that we’re looking for. If you really want to be a little bit more cautious, I think $28,000 is what you want to look for as far as the USD price, but just looking at BTC versus equities, I think there’s a decent chance to really buy into this hopium.”
Bitcoin is trading for $27,561 at time of writing, down 1.5% in the last 24 hours.
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