Bitcoin's potential for reaching new all-time highs is contingent upon support from the stock market, according to a prominent crypto strategist who accurately predicted the 2022 Bitcoin bottom. Discussing in a recent video update, the analyst, known as DonAlt, addresses Bitcoin's current position, emphasizing the need for it to break out of its consolidation phase and embark on a rally towards fresh highs.

DonAlt points out that Bitcoin has displayed relative weakness compared to the stock market, failing to reflect positive developments within the crypto sphere in its price action. Despite this, the analyst remains optimistic about Bitcoin's momentum, especially after it achieved a weekly close above a critical support level. However, DonAlt underscores the importance of the S&P 500's performance in determining Bitcoin's trajectory.

The analyst highlights that if the S&P 500 experiences another strong uptrend, similar to recent trends, and Bitcoin maintains its current level of around $65,500, there is a possibility of significant upward movement, potentially leading to new all-time highs. Nonetheless, DonAlt stresses that Bitcoin's performance is closely tied to the strength of the S&P 500, indicating a dependency on external market factors.

DonAlt's analysis suggests that Bitcoin's recent price movements have not fully aligned with positive news developments within the cryptocurrency space, indicating a disconnect that may be bridged through broader market trends. The strategist's observation of Bitcoin's relative weakness compared to both positive news flow and the S&P's strength underscores the importance of external market dynamics in shaping Bitcoin's price trajectory.

The analyst's perspective sheds light on the interplay between traditional financial markets and the cryptocurrency landscape, highlighting the interconnected nature of these markets and their impact on each other's performance. DonAlt's assessment implies that Bitcoin's journey to new highs may require sustained support from broader market trends, particularly from key indices like the S&P 500.

Looking ahead, DonAlt's insights suggest a scenario where Bitcoin's performance hinges on external factors, specifically the continued strength of the S&P 500. This perspective underscores the dynamic nature of cryptocurrency markets and the intricate relationship between Bitcoin and traditional financial instruments. As investors and analysts closely monitor market developments, the interaction between Bitcoin and broader market trends will likely remain a crucial factor in assessing its future trajectory.