Chart of the Day - Wednesday, July 28th, 2021

BTC vs. SPX, Weekly. Bouncing from major support. pic.twitter.com/yldrnwpd54

— Brian G (@alphacharts) July 28, 2021

Today’s Chart of the Day was shared on Twitter by Brian (@alphacharts). It's a weekly bar chart of Bitcoin vs. the S&P 500 over the past 4.5 years. As a reminder, when this ratio is rising it means Bitcoin is outperforming the S&P 500 and vice versa. Bitcoin has been powering higher this week, after forming a major failed breakdown at the widely watched $30k level last week. It rose for the 8th consecutive day today rallying more than 30% to $40k in that time. Brian points out that, this ratio successfully tested support from the 2017 highs. Given the 8-day winning streak, it wouldn't be surprising to see some profit-taking in the near term. However, as long as this ratio is above 7, expect Bitcoin to outperform Stocks.