Recent data reveals intriguing insights into Bitcoin’s potential performance in relation to the stock market. Historical patterns suggest a cyclical relationship between the two assets, where Bitcoin often lags behind the stock market until a significant rally ensues. This pattern was seen in 2024 when Bitcoin surged by 70% after underperforming the S&P 500 for several months. This time around, similar patterns are observed as Bitcoin consolidates within an established range of $107,000 to $117,000. Following a market crash in October, accumulation addresses surged past 760,000, indicating strategic buying by experienced investors during periods of uncertainty. This surge aligns with historical trends where Bitcoin typically rebounds during periods of consolidation and reflects confidence from long-term holders despite short-term price fluctuations. Further suggesting this is a potential turning point, the Bitcoin cost basis distribution shows significant support near $111,000 and heavy supply around $117,000, defining the battleground between recent buyers and profit-takers. The US spot ETF netflows saw a positive shift in late October, though inflows remain below the usual volume observed during major rallies, suggesting the current demand isn’t yet at the intensity of past cycles. This is reflected by analysts, who anticipate potential volatility as the FOMC meeting approaches. The expected rate cut may push Bitcoin to reach new highs, but it remains to be seen whether this will translate into a sustained bull run. While a breakout above $112,000 has been confirmed as bullish by some analysts and the CME Futures gap could influence market behavior, the current price action offers a nuanced picture of potential volatility. The final word on Bitcoin’s direction depends on how these factors play out in the coming weeks.