Will Bitcoin Reach $110K in 2023? 3 Reasons to be Bullish on BTC Now
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 it’s time to give up on the bear market narrative.
Despite everyone talking about a new macro BTC price low, possibly at $12,000, new perspectives call for a reassessment.
Whether it’s thanks to 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 bring $110,000 BTC price
First up is a theory involving a macro market catalyst, courtesy of macro analyst Henrik Zeberg.
In a tweet from November 24, Zeberg writes maintained that Bitcoin still works just like other risk assets – but notably “not like gold.”
Still, with the FTX scandal weakening 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 a final rally through the risk-asset field could take BTC/USD above $100,000.
“Bitcoin moves like a risk asset (not like gold!). When SPX explodes higher in Blow-Off Top towards 5700 – 6000 target area – Bitcoin should reach 90k – 110k,” he wrote:
“Last rally before the deflation bust!”
An accompanying chart appeared to set the rally in motion at the start of 2023.
Indicator bull div echo March 2020
Back to cryptocentric triggers and on-balance volume (OBV) is one of the indicators that gives a taste of possible bullish times to come.
According to popular trader Alan Tardigrade, now is the time to pay attention as the BTC/USD weekly chart has posted 20 weeks of bullish divergence.
“This indicates a weakening of downward momentum,” part of accompanying Twitter comments read:
“$BTC Could Take a Massive Rally.”
A move to the upside would correspond to Bitcoin’s behavior after the March 2020 COVID-19 crossover.
OBV acts as a cumulative measure of buying and selling pressure by maintaining a running volume over a given time period. It is similar to cumulative volume delta, but includes more than just buying and selling.
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 180K BTC Supply Drop Amid Mt. Gox BTC Sale
For Bitcoin trader and technical analyst Mags, a phenomenon unfolding for the first time in Bitcoin’s history is the event to watch going forward.
Again consulting the weekly chart, Mags noted that BTC/USD’s Relative Strength Index (RSI) is now printing a bullish divergence on weekly timeframes – something never seen before, not even at previous market lows.
“Each Bull Market Peak $BTC Formed a Bearish Divergence on the RSI followed by a Bear Market Correction!” he explained:
“This is the first time ever that BTC prints a bullish divergence on the 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.
