Bitcoin is printing significant bullish divergences with Bitcoin price in line for a “massive 2023 bull run,” new analysis argues.
Bitcoin may rise sharply in price like stocks sometimes do, based on a positive signal from the weekly chart.
According to recent analysis from various prominent figures in the cryptocurrency world. It may be time to stop viewing the current market conditions as a bear market.
Despite the widespread belief that Bitcoin’s price will soon drop to around $12,000. Some experts are suggesting that this may not be the case.
There are three new reasons to believe that Bitcoin will increase in value in the near future. These reasons are either due to macroeconomic conditions or simply to the cyclical nature of the Bitcoin market.
Stocks rally could produce $110,000 Bitcoin price in 2023
Henrik Zeberg, a macro analyst, has put forward a theory involving a macro market catalyst.
In a tweet from Nov. 24, Zeberg said that Bitcoin is behaving like other risk assets, but noted that it is not behaving like gold.
The FTX scandal has weakened the correlation between BTC and stocks. But there is still no reason to abandon the idea that BTC will return.
Bitcoin is not like gold, it is a risk asset. When the SPX index rises sharply towards the 5700-6000 target range. Bitcoin is likely to reach the 90,000-110,000 price range, potentially in 2023.
An accompanying chart appeared to put the bitcoin rally beginning at the start of 2023.
Indicator bull div echoes March 2020
Back to focusing on triggers related to cryptocurrencies. One of the indicators that suggests bullish times may be ahead is on-balance volume (OBV).
According to popular trader Alan Tardigrade, the recent 20 weeks of bullish divergence on the BTC/USD weekly chart indicates that now is a good time to pay attention to this market.
“This indicates the weakening of downtrend momentum,” part of accompanying Twitter comments read:
A move to the upside would correspond to Bitcoin’s behavior after the March 2020 COVID-19 cross-market crash.
OBV acts as cumulative measure of buy and sell pressure by keeping a running tally of volume across a given time period. Similar to cumulative volume delta, but encompasses a wider range of data points than simply bid and ask trades.
Trader: RSI bull div is first for Bitcoin
There are other bullish divergences in addition to OBV that are being talked about by Bitcoin analysts.
Popular: Binance is soon releasing a collection of Cristiano Ronaldo NFTs.
For Bitcoin trader and technical analyst Mags: the most important event to watch out for in the future is something that has never happened before in Bitcoin’s history.
Mags observed that the BTC/USD relative strength index (RSI) is now printing a bullish divergence on weekly timeframes. This is something that has never been 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:
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of DrBitBlock.
