Chart of the Day - Friday, January 3, 2025

🏆 Today's Chart of the Day was shared by Justin Spittler (@JSpitTrades). 
 

• Bitcoin rose for the 4th consecutive day on Friday after refusing to break the neckline of a potential Head & Shoulders Top earlier this week. If this bearish pattern continues to fail, it will likely be very bullish for the entire Crypto market. 
   
• While Bitcoin has stalled since reaching $100k last month, Justin reminds us that it's still breaking out relative to the S&P 500. The ratio ($BTC/$SPY) emerged from a 3-year base in November before successfully retesting in December. 
   
• Bitcoin will likely dominate the S&P 500 in 2025 if this ratio remains above its 2021 peak. However, both assets are trending higher on an absolute basis.  
   

The Takeaway: Bitcoin could dominate Stocks again this year, considering it's emerging from a 3-year base relative to the S&P 500.