Despite the uncertain standoff in the conflict in the Middle East, the US stock market has just achieved another new all-time high. Is the solution to the conflict now within everyone’s reach? Can the S&P 500 break out of the 8-year upward channel? Can Bitcoin ride this stock market wave and move to $80,000 and beyond?
Potential major breakout for the S&P 500
source: TradingView
The S&P 500 weekly chart shows part of a rising channel that has been in the making for several years, so the importance of breaking the top of this channel cannot be overstated. The current rise in the index is one of the fastest rises ever. Either it continues, or this weekly candle will decline inside the channel.
If the candle stays above the upper trend line of the channel and there is confirmation of a breakout next week, the result could be a larger move to the upside.
Will BTC price return to the top of the bear flag?
source: TradingView
The short-term time frame chart above shows that Bitcoin price in dollars It fell through the uptrend line. The collapse has been confirmed, but since then A W pattern is formed. Recently, the price has risen above the neckline of this pattern. The full extent of the measured move (if it occurs) would take the price just above the upper trend line of the bear flag.
All eyes will be on the US stock market on Friday. A positive weekly close above a multi-year channel could really help set stocks on fire, with the potential for a strong top pushing stock market indices higher. Bitcoin would likely behave very favorably in such a bullish climate, but a failed breakout of the S&P 500 would likely create a similar situation for the market. Bitcoin price in dollars.
There are several barriers to the upside, but golden crosses are on the horizon
source: TradingView
The daily time frame shows the obstacles he faces Bitcoin price in dollars You will need to overcome the change of direction eventually. First, the bulls will need to push the price out of the bear flag and beyond the $80,000 horizontal resistance level. Next will be Successful breakout of the 200-day simple moving average. The third hurdle will be the strong horizontal resistance at $90,000, and finally, the last hurdle that must be overcome in order to return the price to the bull market will be a rise above Last pivotal high at $98,000.
We must take into account that these are the main obstacles, and that the price will also face other important resistance levels on the way. However, this gives an idea of the enormity of the task that lies ahead for the bulls.
Among the factors contributing to this potential rally is the bullish crossover in the daily Stochastic RSI indicators. also, Two golden crosses on the horizon. The 50-day SMA is currently crossing above the 100-day SMA. Next will be a crossover between the 50-day simple moving average above the 200-day simple moving average.
Bullish monthly time frame
source: TradingView
A very high time frame view is the monthly view. Many investors don’t go that far, with most just looking at the weekly macroeconomic outlook. The very simple chart above tells us a lot about what could happen in the future Bitcoin price in dollars.
First, we have a major trend line. It started at the beginning of 2023, provided support later that year, and very importantly was recently marked at the beginning of 2026, which has become the base for this current rally. As long as the price stays above this trend line, this indicates that the bottom has been reached, and that this could be a permanent rally that eventually takes the price back to its all-time high.
It should be noted that there is another potential trend line below. This would give a minimum of $30,000 if… Bitcoin price in dollars The price fell lower from here, but a more realistic place for price to meet this lower trend line would be at around $40,000.
Following the more bullish setup, the Stochastic RSI lines recently crossed from the bottom. Once it crosses the 20.00 level, it should indicate significant upward momentum. Will the bulls surprise everyone and exit the downtrend before the market expects it to happen?
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
