Bitcoin rose to $73,600 on Tuesday, breaking above resistance around $70,000. Despite this rally, Caleb Franzen, founder of Cubic Analytics, believes Bitcoin is still preparing for a breakout. Franzen sees the recent BTC price action as encouraging in the short term and a sign of an upcoming bull run.
During the Thinking Crypto podcast, Franzen explained that the lack of a Bitcoin breakout is similar to the stock market’s situation, where the NASDAQ 100 is close to reaching new all-time highs. He predicts a significant follow-through if Bitcoin and the NASDAQ break out as expected.
Franzen maintains that Bitcoin will reach at least $175,000 in the current bull cycle. He is optimistic about both the crypto and stock market, which Bitcoin has outperformed since the beginning of 2024. He pointed out that only a few digital assets, like Solana and Sui, have matched or exceeded Bitcoin’s gains this year.
It is worth noting that Bitcoin’s dominance climbed above 60% this week for the first time since April 2021. This demonstrates Bitcoin’s recovery as a dominant instrument among risk asset investors and reinforces its leadership in the cryptocurrency industry, highlighting its relative haven status compared to altcoins.
Macro Indicators Support Bitcoin Bull Market
Franzen identified macro indicators that support a Bitcoin bull market, including the bullish performance of mainstream assets. He noted that about 35% of the S&P 500 constituents have reported earnings and that companies are exceeding expectations and raising guidance.
Read also: Bitcoin Dominance Nears Critical Level; What’s Next for Altcoins?
Franzen explained that asset prices depend on future cash flows and interest rates. He expects future cash flows to continue rising, which suggests that asset prices will increase. In the meantime, Bitcoin pulled back after the recent rally and traded for $69,051 at the time of writing, reflecting a 6.65% decline within the past three days, according to data from TradingView.
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