Bitcoin (BTC) may be following stocks on a “massive bull run” as the weekly chart offers a unique sign of strength.
The latest analysis from several well-known crypto names suggests that it is time to let go of the bear market narrative.
Although everyone is talking about a new low BTC macro price, perhaps at $12,000, new prospects demand an overhaul.
Whether thanks to the macro or just good old bitcoin price cycles, there are three new reasons to turn bullish on bitcoin in its current state near two-year lows.
Stock rally could produce BTC price of $110,000
First in line is a theory involving a macro market catalyst, courtesy of macro analyst, Henrik Zeberg.
In a November 24 tweet, Zeberg
that Bitcoin still acts like other risky assets – but notably, “not like gold”.
#Bitcoin moves as a Risk Asset (not like #Gold!)— Henrik Zeberg (@HenrikZeberg) November 24, 2022
When #SPX explodes higher in Blow-Off Top towards 5700 - 6000 target area - Bitcoin should reach 90k - 110k.
Final rally before #Deflationary Bust! pic.twitter.com/pkZliMEuL4
With the FTX scandal weakening the correlation between BTC and stocks, there is nevertheless no reason to give up on the idea that it will return.
For Zeberg, a rising tide lifts all boats, and a final rally in the realm of risky assets could take BTC/USD over $100,000.
“Bitcoin moves like a risk asset (not like gold!). When SPX explodes higher in Blow-Off Top towards the 5700 – 6000 target area – Bitcoin should reach 90k – 110k,” he wrote:
“Last rally before the deflationary bust!”
An accompanying chart appeared to set the rally in motion at the start of 2023.
Bullish div indicator echoes March 2020
The return to crypto-centric triggers and equilibrium volume (OBV) is one of the indicators giving a taste of possible bullish times ahead.
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 momentum of the downtrend,” is part of the accompanying comments on Twitter
#Bitcoin On-balance volume (OBV) Weekly Bullish Divergence has been seen for 20 weeks.— Trader Tardigrade (@TATrader_Alan) November 25, 2022
This indicates the weakening of downtrend momentum. $BTC may pick up a Massive Rally.#BTC #Cryptos pic.twitter.com/z8yRrZ3ETk
“$BTC can pick up a Massive Rally.”
An upward move would match Bitcoin’s behavior after the March 2020 COVID-19 crossover crash.
The OBV acts as a cumulative measure of buying and selling pressure by keeping a running count of volume over a period of time. It is similar to the Cumulative Volume Delta, but encompasses more than just buying and selling transactions.
Trader: RSI bull div is first for Bitcoin
OBV is not the only bullish divergence making waves in Bitcoin analysis circles.
Related: Bitcoin Exchanges See 180,000 BTC Supply Dwindle Amid Mt. Gox BTC Selloff
For trader and technical analyst Bitcoin Mags, a phenomenon occurring for the first time in Bitcoin’s history is the event to watch in the future.
Looking back at the weekly chart, Mags noted that the BTC/USD Relative Strength Index (RSI) is now printing a bullish divergence on weekly timeframes – something not seen before, not even at previous bear market lows.
“Each spike in the $BTC bull market formed a bearish divergence on the RSI followed by a bear market correction!” he
#Bitcoin x Divergence || 1W ✍️— Mags (@thescalpingpro) November 24, 2022
Every Bull Market Peak $BTC formed a bearish divergence on RSI followed by a bear market correction!
This the first time ever #BTC is printing a bullish divergence on WEEKLY
Probably nothing..👀#crypto #cryptocurrency pic.twitter.com/2Bsjv8AXvu
“This is the first time BTC has printed a bullish divergence on WEEKLY. Probably nothing.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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