cryptoglobe.com
A popular cryptocurrency analyst has predicted a massive Bitcoin ($BTC) price rally for next year based on a technical indicator flashing a trend reversal, which would suggest BTC’s sell-off is soon coming to an end.
In a tweet shared with their nearly 190,000 followers on the microblogging platform Twitter, pseudonymous analyst Inmortal noted that Bitcoin is flashing a bullish divergence on its three-day chart, with its Relative Strength Index (RSI) making higher lows.
Monster divergence on #Bitcoin
— Inmortal (@inmortalcrypto) December 19, 2022
It's positive, but it isn't a bottom signal. Price may continue to go down as the RSI makes higher lows. pic.twitter.com/Vxfx7qjOyt
A bullish divergence occurs when prices are falling to new lows, but an oscillator doesn’t actually reach new lows. According to Investopedia, such a divergence “demonstrates that bears are losing power, and that bulls are ready to control the market again.” A bullish divergence may even mark the end of a downtrend.
The RSI is a momentum indicator used to measure the speed and magnitude of an asset’s price changes, to help evaluate whether it’s overpriced or underpriced. It’s an oscillator that was introduced to the market in 1978.
Inmortal then shared a Bitcoin price chart showing the cryptocurrency’s surge from around $3,000 to ever $30,000 after the bear market bottom in 2019, saying that he expects the cryptocurrency to repeat such a rally in 2023.
We repeat this in 2023. pic.twitter.com/srIHCQ1Z5b
— Inmortal (@inmortalcrypto) December 19, 2022
As CryptoGlobe reported various analysts are bullish on BTC. A fund manager at investment giant VanEck has recently predicted that the price of the flagship cryptocurrency Bitcoin could rally to $30,000 in the second half of 2023 after falling to a low near the $10,000 to $12,000 mark.
Earlier this month billionaire investor Tim Draper, the founder of Draper Associates and one of Silicon Valle’s best-known investors, doubled down on his $250,000 Bitcoin price prediction, saying the cryptocurrency will hit that mark by June of next year.
Draper isn’t the only billionaire bullish on crypto. Billionaire investor Mike Novogratz has revealed that he still believes BTC will trade at $500,000 per coin in the future, but delayed his prediction over the Federal Reserve and other central banks raising interest rates to rein in inflation.