Bitcoin is testing critical support levels on two key technical charts, according to analysis from crypto market analysts. The BTC/SPX ratio, which measures Bitcoin's performance against the S&P 500, has dropped to the 8 level, the same zone that held during the yen carry trade unwind and the first June low. Simultaneously, Bitcoin's weekly chart shows the asset trading near the lower boundary of a multi-year ascending channel, with the weekly RSI returning to what analysts describe as a historical demand zone. The technical setup mirrors the structure that preceded the 2023 bull market, with $68,000 identified as the key resistance level that would need to be reclaimed to confirm renewed strength.
Bitcoin-to-Stock Ratio Tests Support at 8 Level
Bitcoin's performance against the S&P 500 has dropped back to a key support area, with the BTC/SPX ratio testing the same zone that held during the yen carry trade unwind and the first June low, according to analyst Daan Crypto Trades.
The BTC/SPX ratio tracks how Bitcoin performs compared with the S&P 500. When the ratio rises, Bitcoin outperforms stocks; when it falls, Bitcoin loses ground against the broader equity market. The chart shows BTC/SPX near the 8 level, an area that previously acted as support during major market stress.
According to Daan Crypto Trades, this level matters for traders who watch relative value between assets. A hold at this zone would suggest Bitcoin is still defending an important support area against equities. However, a break below this level would weaken the setup, with the chart showing limited nearby support below the current zone. The next major support area sits closer to late 2023 levels, before the spot Bitcoin ETF rally began.
Bitcoin Weekly Chart Shows 2023-Style Technical Pattern
Bitcoin is testing a major macro support area, with analyst BATMAN stating the current setup looks similar to the structure that preceded the 2023 bull market.
The chart shows BTC trading near the lower boundary of a multi-year ascending channel. This area has acted as a long-term support zone in previous market cycles, including before Bitcoin's strong rally in 2023. The weekly RSI has also returned to what the analyst describes as a historical demand zone. In past setups, similar RSI moves showed weakening downside momentum before buyers stepped back in.
The key breakout level sits near $68,000, according to the chart. A clean move above that level could confirm renewed strength and open the door to a larger move higher. The analyst's upside projection points toward $140,000 or more if the same fractal plays out again. However, Bitcoin still needs to reclaim resistance first before that target becomes the main scenario.
For now, the lower channel support and the weekly RSI zone remain the main levels to watch. Holding this area would support the bullish case, while a failure to defend it could weaken the macro setup.
FAQ
What is the BTC/SPX ratio and why does it matter?
The BTC/SPX ratio measures Bitcoin's performance relative to the S&P 500 index. When the ratio rises, Bitcoin is outperforming stocks; when it falls, Bitcoin is losing ground against the broader equity market. The ratio is currently testing the 8 level, which previously acted as support during the yen carry trade unwind and the first June low.
What technical level does Bitcoin need to reclaim for renewed strength?
According to analyst BATMAN's chart analysis, Bitcoin needs to reclaim $68,000 to confirm renewed strength. A clean move above that level could open the door to a larger move higher, with the analyst's upside projection pointing toward $140,000 or more if the same pattern from 2023 plays out again.
How does Bitcoin's current chart setup compare to 2023?
Bitcoin is trading near the lower boundary of a multi-year ascending channel, similar to the structure before the 2023 bull market. The weekly RSI has returned to a historical demand zone, where similar moves in past setups showed weakening downside momentum before buyers stepped back in.
