As per a new analysis, the BTC price might be in for a huge bull run due to Bitcoin producing overly optimistic divergences. A weekly chart even exhibits that bitcoin might trail stocks following a huge bull run. Even though there are predictions of bear market rhetoric, fresh insights urge a reconsideration.
There are numerous reasons why you should make the switch towards a positive position on Bitcoin, even at its present price of close to two-year lows.
Rising stocks could lead to Bitcoin reaching $110,000
This theory comes from Henrik Zeberg, the macro analyst, through a series of tweets. He argues that Bitcoin is behaving similarly to other risky investments and that there are no reasons to give up on the hope of Bitcoin’s return. Zeberg reckons a last rise across the vulnerability asset market might push bitcoins over $100,000. Further, he says bitcoin fluctuates and might reach 90K–110K if and when SPX reaches an expected range of 5700–6000.
Bullish divergence resonates in March 2020
Returning to crypto-specific triggers, the OBV (on-balance volume) is among the signs indicating potential future bullish periods. Popular analyst Alan Tardigrade claims that given the BTC/USD week-long chart’s five months of bullish divergence, it is crucial to remain alert. A surge upward would reflect how Bitcoin behaved following the COVID-19 inter-market collapse in early March 2020.
Bullish divergence by RSI a first for BTC
For market and analytical researcher Mags, the occasion to watch moving forward is a factor that is manifesting for the very first time in Bitcoin’s history.
Mags looked at the regular chart once more and discovered a new development: BTC/USD’s RSI (relative strength index) is currently printing an uptrend divergence per week duration, which has never happened previously, never even at past bear market recessions.
