Top Trader Says Bitcoin (BTC) Is About To Rally And Outperform The Stock Market – Here’s His Timeline
A well-known crypto trader and analyst claims that Bitcoin (BTC) is likely close to breaking above its current trading range as it is decorrelated from the stock market.
The pseudonymous trader known as Kaleo tells his 476,000 Twitter followers that he watches Bitcoin, not priced in USD, but against the S&P 500 Index (SPX).
By looking at Bitcoin versus SPX (BTC/SPX), Kaleo indicates that a trader can get a clearer picture of where BTC’s price is going and where it is headed next. For example, the analyst points out that BTC/SPX never formed the double top pattern that BTC/USD printed in November 2021, which caught many traders off guard.
“An interesting pair to watch is BTC vs SPX.
Chart is 10x cleaner than BTCUSD, shows clear support in base ranges above 2017 [high] support, and a much stronger macro structure (no false breakout/all-time high in October/November).
Last week, the Kaleo pointed out that Bitcoin was largely decorrelated from SPX, a rare occurrence after several months of trading in unison.
“Also fun to watch the price action divergence in SPX/BTC today
Bitcoin has essentially traded as an SPX proxy in recent memory, so any outperformance is always entertaining.
Zooming out, the trader sees BTC/SPX breaking higher, increasing the likelihood of Bitcoin rallies.
“It seems pretty obvious that this fork is going to break higher.”
Kaleo also considers the possibility of Ethereum (ETH) breaking out against the S&P 500. He references BitMEX founder Arthur Hayes’ recent prediction that ETH would be trading north of $10,000 by the end of of the year.
“What if Arthur was right?”
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