Bitcoin (BTC) may be following stocks in a “massive bull run” as the weekly chart shows a unique sign of strength.
The latest analysis of several well-known crypto names shows that it is time to drop the bear market narrative.
While everyone is talking about a new low for the BTC macro price, possibly at $12,000, the new outlook needs to be rethought.
Whether due to macroeconomic changes or just plain old bitcoin price cycles, there are three new reasons why bitcoin is turning bullish in its current state near two-year lows.
Rising stocks could push BTC price up to $110,000
First in line is a theory involving a macromarket catalyst, courtesy of macroanalyst Henrik Seberg.
In a tweet dated November 24, Seberg supported that Bitcoin still behaves like other risky assets, but most importantly, “not like gold.”
The FTX scandal has weakened the correlation between BTC and stocks, however, there is no reason to dismiss the idea that it will return.
For Zeberg, the tide is lifting all boats and a final rally in risk assets could see BTC/USD top $100,000.
“Bitcoin moves like a risky asset (not like gold!). When SPX soars up the Blow-Off Top to the 5700-6000 target area, Bitcoin should reach 90-110,000,” he wrote:
“Last Rally Before Deflationary Crash!”
The attached chart indicates the start of the rally in early 2023.
The fall of the indicator repeats March 2020.
Back to crypto-centric triggers and on-balance volume (OBV) is one of the indicators that gives an idea of possible bullish times.
According to popular trader Alan Tardigrade, now is the time to pay attention as the BTC/USD weekly chart showed a 20-week bullish divergence.
“This indicates a weakening of the momentum of the downtrend,” part of the accompanying comments on Twitter. read:
“$BTC could start a massive rally.”
The move up will be in line with the behavior of Bitcoin after the COVID-19 cross-market crash in March 2020.
OBV acts as a cumulative measure of buying and selling pressure, maintaining a running count of volume over a given period of time. It is similar to the cumulative volume delta, but includes more than just buying and selling trades.
Trader: Bullish RSI is a first for Bitcoin
OBV is not the only bullish divergence causing a wave in Bitcoin analyst circles.
Related: Bitcoin Exchanges See 180k BTC Supply Cut Amid Mt.Gox BTC Selling
For bitcoin trader and technical analyst Mags, the first-ever occurrence in Bitcoin history is an event to keep an eye on for the future.
Referring again to the weekly chart, Mags noted that the BTC/USD Relative Strength Index (RSI) is now showing a bullish divergence on the weekly timeframes – something that has never happened before, even at previous bear market lows.
“Each peak of the $BTC bull market formed a bearish divergence on the RSI followed by a bear market correction!” he explained:
“This is the first time BTC shows a bullish divergence on WEEKLY. Probably nothing.”
The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.