Bitcoin In 2023:
New analysis, Bitcoin is printing huge positive divergences, and the price of BTC is poised to go on a “massive bull run.”
As the weekly chart exhibits a distinct strength indicator, bitcoin may follow stocks on a “huge bull run.”
According to the most recent analysis from several well-known cryptocurrency names, it’s time to abandon the bear market narrative.
Even though everyone is predicting a new macro BTC price low, probably near $12,000, fresh viewpoints necessitate a change of heart.
There are three new reasons to switch to a favourable position on Bitcoin at its current price of close to two-year lows, whether because of macro or plain old Bitcoin price cycles.
Stocks could push Bitcoin to $110,000
The first theory comes from macro analyst Henrik Zeberg and involves a macro market catalyst.
In a tweet from November 24, Zeberg argued that Bitcoin was still behaving similarly to other risky investments but “not like gold.”
There is still no reason to give up on the notion that it will return, even though the FTX controversy has lessened the link between BTC and stocks.
A last rise throughout the risk asset market might push BTC/USD over $100,000, according to Zeberg, who believes that rising tides raise all boats.
“Unlike gold, bitcoin moves as a risk asset. He added that bitcoin should reach 90k – 110k when SPX surges higher in the Blow-Off Top near the 5700 – 6000 target range.
Bull div indicator echoes March 2020
Returning to triggers specific to cryptocurrencies, on-balance volume (OBV) is one of the signs indicating potential future bullish periods.
Famous trader Alan Tardigrade claims that given the BTC/USD weekly chart’s 20 weeks of bullish divergence, it is now essential to pay attention.
A portion of the related Twitter comments stated, “This implies the slowing of decline momentum”:
Bitcoin could see a Massive Rally.
OBV-annotated BTC/USD chart. Alan Tardigrade and Twitter
A surge upward would be consistent with how Bitcoin behaved following the COVID-19 cross-market meltdown in March 2020.
OBV maintains a running total of volume over a specified period and is a cumulative indicator of buy and sell pressure. In contrast to cumulative volume delta, it includes transactions other than asking and bid trades.
Trader: The Bitcoin RSI bull div is the first.
In the world of Bitcoin analytics, bullish divergences are not just being made by OBV.
For trader and technical analyst Mags, the event to watch moving forward is a phenomenon that is manifesting for the first time in Bitcoin’s history.
Mags looked at the weekly chart and saw that the BTC/USD relative strength index (RSI) currently displays a bullish divergence on weekly timeframes. According to Mags, this has never happened before, not even at past bear market lows.
Every bull market peak $BTC generated a negative divergence on RSI; he said, “and then there was a bear market correction.”
This is the first time that a bullish divergence on WEEKLY is printed for BTC. Most likely, nothing.