Home CryptocurrencyBitcoin Will bitcoin reach $110k in 2023? 3 Reasons to be Bullish on BTC Now

Will bitcoin reach $110k in 2023? 3 Reasons to be Bullish on BTC Now

by SuperiorInvest

Bitcoin (BTC) may follow stocks on a “massive bull run” as the weekly chart delivers a unique sign of strength.

The latest analysis of several well-known cryptocurrencies suggests that it’s time to give up bear market story.

Despite everyone talking about the new low price of macro BTC, maybe for $12,000new perspectives require reconsideration.

Whether it’s due to the macro or just good old bitcoin price cycles, there are three new reasons for bitcoin to turn bullish in its current state near two-year lows.

A stock rally could bring the price of $110,000 BTC

First up is a theory involving the macro market catalyst, courtesy of macro analyst Henrik Zeberg.

In a Nov. 24 tweet, Zeberg maintained that Bitcoin still behaves like other risk assets – but notably “not like gold”.

However, 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 will lift all boats, and a final rally across the risk-asset field could take BTC/USD over $100,000.

“Bitcoin moves like a risk asset (not like gold!). As SPX explodes higher in Blow-Off Top towards 5700-6000 target area – Bitcoin should reach 90,000-110,000,” he wrote:

“The last rally before the deflationary crash!”

The accompanying chart appears to place the start of the rally at the beginning of 2023.

Commented BTC/USD vs. S&P 500. Source: Henrik Zeberg/Twitter

Indicator bull div echoes March 2020

Back to crypto-centric triggers and on-balance volume (OBV) is one indicator 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 printed a 20-week bullish divergence.

“This indicates a weakening of downtrend momentum,” part of the accompanying comments on Twitter read:

“$BTC May Pick Up Massive Rally.”

BTC/USD annotated chart with OBV. Source: Alan Tardigrade/Twitter

An upward move would match Bitcoin’s behavior after the March 2020 market-wide COVID-19 crash.

OBV acts as a cumulative measure of buying and selling pressure by keeping a running record of volume over a given time period. It is similar to cumulative volume delta but involves more than just supply and demand trades.

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 BTC Supply Drop By 180,000 As BTC Sells Mt

For Bitcoin trader and technical analyst Mags, the phenomenon that is happening for the first time in the history of Bitcoin is an event to watch in the future.

Taking another look at the weekly chart, Mags noticed that the BTC/USD Relative Strength Index (RSI) is now printing a bullish divergence on the weekly time frames – something we haven’t seen before, even at previous bear market lows.

“Every $BTC bullish top created a bearish divergence on the RSI followed by a bearish correction!” he he explained:

“This is the first time ever that BTC is printing a WEEKLY bullish divergence. Probably nothing.”

BTC/USD annotated chart with . Source: Mags/Twitter

The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.