Bitcoin (BTC) could follow stocks in a “massive bull run” as the weekly chart offers a unique sign of strength.
The latest analysis from several household names within the cryptocurrency space suggests that it is time to abandon the bear market narrative.
Despite everyone talking about a new BTC macro price, possibly at $12,000, the new outlook calls for a rethink.
Whether thanks to macro-economic factors or just old Bitcoin price cycles, there are three new reasons to turn bullish on Bitcoin in its current state near two-year lows.
A stock rally could push BTC price to $110,000
The first is a theory that implies a macro-economic catalyst for the market, courtesy of analyst Henrik Zeberg.
In a November 24 tweet, Zeberg held that Bitcoin continues to act the same as other risky assets, but above all “not like gold”.
Although the FTX scandal weakens the correlation between BTC and stocks, there is no reason to abandon the idea that it will return.
For Zeberg, a rising tide lifts all boats, and one last rally across the entire field of risk assets could take the BTC/USD pair above $100,000.
“Bitcoin moves like a risk asset (not like gold!). When SPX breaks out higher on Blow-Off Top towards 5,700 – 6,000 target area – Bitcoin should reach $90,000 – $110,000,” he wrote:
“Last rally before the deflationary bang!”
An accompanying chart appeared to put the rally in early 2023.
Bullish Divergence Indicator Echoes March 2020
Going back to crypto-centric triggers, On Balance Volume (OBV) is one of the indicators that gives an idea of potential bullish times ahead.
According to popular trader Alan Tardigrade, now is the time to pay attention because the weekly chart for BTC/USD has marked 20 weeks of bullish divergence.
“This signals weakening momentum from the downtrend,” He said part of the comments that accompanied the post on Twitter:
“BTC may pick up a massive rally.”
An upward move would correspond to Bitcoin’s behavior following the March 2020 COVID-19 cross-market shock.
OBV acts as a cumulative measure of buying and selling pressure by keeping a continuous count of volume over a given period of time. It is similar to cumulative volume delta, but encompasses more than just buying and selling trades.
Trader: RSI bullish divergence a first for Bitcoin
OBV is not the only bullish divergence making noise in Bitcoin analysis circles.
For Bitcoin trader and technical analyst Mags, a first-time phenomenon in Bitcoin history is the event to watch for in the future.
Checking the weekly chart again, Mags noted that the BTC/USD RSI is now printing a bullish divergence on the weekly timeframes, something never seen before, not even at previous bear market lows.
“Each BTC bull market spike formed a bearish divergence on the RSI followed by a bear market correction”, explained:
“This is the first time BTC has printed a bullish divergence on a WEEK. It’s probably nothing.”
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