Bitcoin (BTC) may follow stocks on a “massive bull run” as the weekly chart delivers a unique sign of strength.
The latest analysis from several well-known crypto names suggests it is time to give up the bear market narrative.
Despite everyone talking about a new macro BTC price low, possibly at $12,000, new perspectives demand a rethink.
Be it thanks to macro or just good old Bitcoin price cycles, there are three new reasons to flip bullish on Bitcoin in its current state near two-year lows.
Stocks rally could produce $110,000 BTC price
First in line is a theory involving a macro market catalyst, courtesy of macro analyst, Henrik Zeberg.
In a tweet from Nov. 24, Zeberg maintained that Bitcoin is still acting just like other risk assets — but notably, “not like gold.”
With the FTX scandal weakening the correlation between BTC and stocks, there is nonetheless no reason to abandon the idea that it will return.
For Zeberg, a rising tide lifts all boats, and a final rally throughout the risk asset field could take BTC/USD over $100,000.
“Bitcoin moves as a Risk Asset (not like Gold!). When SPX explodes higher in Blow-Off Top towards 5700 – 6000 target area – Bitcoin should reach 90k – 110k,” he wrote:
“Final rally before Deflationary Bust!”
An accompanying chart appeared to put the rally beginning at the start of 2023.
BTC/USD vs. S&P 500 annotated chart. Source: Henrik Zeberg/ Twitter
Indicator bull div echoes March 2020
Back to crypto-centric triggers and on-balance volume (OBV) is one of the indicators giving a taste of possible bullish times to come.
According to popular trader Alan Tardigrade, now is the time to pay attention as the BTC/USD weekly chart has printed 20 weeks of bullish divergence.
“This indicates the weakening of downtrend momentum,” part of accompanying Twitter comments read:
“$BTC may pick up a Massive Rally.”
BTC/USD annotated chart with OBV. Source: Alan Tardigrade/ Twitter
A move to the upside would correspond to Bitcoin’s behavior after the March 2020 COVID-19 cross-market crash.
OBV acts as a cumulative measure of buy and sell pressure by keeping a running tally of volume across a given time period. It is similar to cumulative volume delta, but encompasses more than simply bid and ask trades.
Trader: RSI bull div is first for Bitcoin
OBV is not the only bullish divergence making waves in Bitcoin analytics circles.
Related: Bitcoin exchanges see 180K BTC supply decrease amid Mt. Gox BTC sales
For Bitcoin trader and technical analyst Mags, a phenomenon playing out for the first time in Bitcoin’s history is the event to monitor going forward.
Again consulting the weekly chart, Mags noted that the BTC/USD relative strength index (RSI) is now printing a bullish divergence on weekly timeframes — something never seen before, not even at previous bear market lows.
“Every Bull Market Peak $BTC formed a bearish divergence on RSI followed by a bear market correction!” he explained:
“This the first time ever BTC is printing a bullish divergence on WEEKLY. Probably nothing.”
BTC/USD annotated chart with . Source: Mags/ Twitter
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This article has been originally published at: https://cointelegraph.com/news/will-bitcoin-hit-110k-in-2023-3-reasons-to-be-bullish-on-btc-now