Not only is Bitcoin potentially setting a low against the US dollar, but it is showing strong signs of the beginning of a rally against the U.S. stock market. Bottoming against the likes of NVDA and TSLA, there could be plenty of upside for Bitcoin to come. Big rally to come for $BTC against the S&P 500? Source: TradingView The weekly chart of Bitcoin against the S&P 500 (BTCUSD/SPX) shows that the ratio has just dipped below the major trendline. However, of more importance than trendlines are major supports. It can be seen that the ratio has just touched down onto the 0.618 Fibonacci, which is more or less in convergence with major horizontal support. Given that the Stochastic RSI indicator lines are at rock bottom, it cannot be long before the ratio changes in favour of $BTC once again. The last time the indicators crossed up, a 47% gain for $BTC was the result. A 74% rise for $BTC against NVDA to come? Source: TradingView Nvidia (NVDA) is the biggest company by market capitalization in the world, and has seen the most growth in recent years compared with any other company. The weekly chart above is BTCUSD/NVDA. While it looks as though $BTC has been completely outperformed by NVDA, a rise from the strong support (orange lines) could be coming soon given that weekly and 2-week Stochastic RSI indicators are at or approaching bottoms. Just a rise to the main horizontal resistance (blue line) would entail a 74% increase in $BTC over NVDA. BTC about to outperform TSLA on all high time frames Source: TradingView Tesla (TSLA) is arguably the future biggest company in the world if their robotaxi and humanoid robots launch successfully. That said, it looks as though $BTC is about to come into a good period of outperformance here as well. Not only is momentum about to change in favour of $BTC in the weekly time frame, but also in the 2-week, and even the monthly as well. The 2-week chart above reveals how the ratio is just testing the 0.618 Fibonacci. Even if the ratio continues in favour of TSLA for a while, there is a very good chance that the major horizontal support below would do its job. Conclusion If one looks at the ratios of all the big US companies compared to Bitcoin a similar picture materialises. Bitcoin has been utterly beaten down over these past few weeks, and when this happens to a stock or a commodity with 5 star fundamentals like Bitcoin, you know that it is going to come back. If it is going to outperform all the great US companies then what chance does the US dollar have? It’s about to be Bitcoin’s time in the sun once more. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
