We are currently in one bear market. That is a fact that you can hardly ignore in the meantime. How long this period of downward price pressure will last is the big question that is now naturally on the mind of investors. Will it be years before the rate of bitcoin (BTC) another one rally will start, or can we expect this much sooner? Those who look closely can already notice some signs that may suggest a relatively quick recovery.
Bitcoin rate
The sentiment in the crypto market is downright bad. This is further evidenced by the fact that many investors expect that the current price point for BTC is not the bottom. Often people look even further down, for example to $12,000, as a possible final bottom. However, there is a chance that we will never sink that low in this bear market.
Macro analyst Henrik Zenberg argues that the bitcoin rate is still very closely correlated with the stock market, and in particular the S&P 500. According to Zenberg, there is a good chance that the stock market can go up again, and BTC will then be pulled up with it. Possibly even as high as $90,000 $110,000!
#Bitcoin moves as a Risk Asset (not like #Gold!)
When #SPX explodes higher in Blow-Off Top towards 5700 – 6000 target area – Bitcoin should reach 90k – 110k.
Final rally before #Deflationary bust! pic.twitter.com/pkZliMEuL4
— Henrik Zeberg (@HenrikZeberg) November 24, 2022
bullish divergence
Technical analysts are also looking expectantly at the chart of bitcoin at the moment. In fact, according to analyst Alan Tardigrade, there is a 20-week bull divergence on the on balance volume (OBV) visible. According to him, this is indicative of weakening downward momentum and could be a serious one rally usher in.
“$BTC could start a massive rally.”
#Bitcoin On-balance volume (OBV) Weekly Bullish Divergence has been seen for 20 weeks.
This indicates the weakening of downtrend momentum. $BTC may pick up a Massive Rally.#BTC #Cryptos pic.twitter.com/z8yRrZ3ETk
— Trader Tardigrade (@TATrader_Alan) November 25, 2022
Also, there is currently for the first time in history bull divergence of the RSI visible on the weekly graph of bitcoin. According to analyst Mags, this is an extremely important event and everyone should keep an eye on it.
“Every Bull Market Peak, $BTC formed a bearish divergence on RSI followed by a bear market correction! This is the first time ever BTC prints a bullish divergence on WEEKLY.”
#Bitcoin x Divergence || 1W ✍️
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
— Mags (@thescalpingpro) November 24, 2022