Bitcoin Nears Potential Accumulation Zone as Bitcoin-AAPL Ratio Flashes Warning Signs
Bitcoin has navigated through one of its most unprofitable stretches in history, extending across three quarters and two calendar years. Its slump diverged from the equities market over the same window, leaving many investors holding positions below their entry price.
The Bitcoin-AAPL ratio has been a key indicator for mapping the cryptocurrency's cycle. The chart from Alphractal shows the correlation between Bitcoin and Apple shares trading inside an ascending channel since 2017. This channel defines parallel support and resistance lines, with the lower boundary historically marking undervaluation for Bitcoin.
According to data from Alphractal, every long-term Bitcoin cycle over this period has respected those boundaries. The current ratio places Bitcoin close to the support line once again, with a narrow gap remaining. A move into that region could put Bitcoin back in the accumulation zone that preceded its earlier expansion phases.