Bitcoin (Bitcoin) could follow the stock in a “massive bull market” as its weekly chart shows signs of strength of its own.
The latest analysis from some well-known crypto names suggests it’s time to give it up. bear market story.
Despite everyone talking about the low price of the new macro BTC, probably $12,000the new perspective demands a rethink.
Whether it’s because of macros or because of the good old Bitcoin price cycle, there are three new reasons why Bitcoin is bullish in its current state near its two-year low.
Rise in Stocks May Cause BTC Price of $110,000
The first is macro analyst Henrik Zeberg’s theory on macro market catalysts.
In a tweet on November 24th, Zeberg said maintained Bitcoin still performs like any other risky asset, but especially “different than gold.”
Despite the FTX scandal weakening the correlation between BTC and equities, there is no reason to abandon the idea that it will come back.
For Zeberg, the rising tide lifts all ships and the eventual rally across the risk asset sector could see BTC/USD above $100,000.
“Bitcoin moves as a risky asset (unlike gold!). If SPX explodes at the blowoff top towards the 5700-6000 target area, Bitcoin should hit 90k-110k,” he wrote. .
“The last rally before deflation collapses!”
The accompanying chart made it look like the rally would start in early 2023.
March 2020 Indicative Div Echo
A return to crypto-centric triggers and on-balance volume (OBV) is one indicator of bullish potential ahead.
According to popular trader Alan Tardigrade, the BTC/USD weekly chart shows a 20-week bullish divergence, so now is the time to pay attention.
“This indicates that the downtrend is losing momentum,” said part of an accompanying Twitter comment. read:
“$BTC may cause a massive rally.”
The upward move corresponds to Bitcoin’s move after the COVID-19 cross-market crash of March 2020.
OBV serves as a cumulative measure of trading pressure by aggregating volume over time. This is similar to Cumulative Volume Delta, but includes more than just bid and ask trading.
Trader: RSI bull div is Bitcoin’s first
OBV is not the only bullish divergence making waves in the Bitcoin analytics world.
For Bitcoin trader and technical analyst Mags, the first phenomenon in Bitcoin history is a watchdog event.
Mags again referred to the weekly chart and noted that the BTC/USD Relative Strength Index (RSI) is currently showing a bullish divergence on a weekly basis.
“Every bull market peak $BTC formed a bearish divergence in the RSI followed by a bear market correction!” explained:
“This is the first time BTC has shown a bullish divergence on a WEEKLY. Probably nothing.”
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