A closely followed crypto analyst says that equities and crypto markets are set to rally in tandem on another upcoming leg up for risk-on assets.
The pseudonymous analyst known as TechDev, known for longer-term technical analysis, tells his 399,000 Twitter followers that Bitcoin (BTC) and the stock market are still in a bullish impulse that he thinks will continue in 2023.
“When equities run, Bitcoin runs.
And I expect the steepest equities leg of the last 40 years to run into 2023.
After that, potentially a big test for Bitcoin and crypto.
My opinion of course.”
According to TechDev, BTC’s technicals are hinting that after a rally into next year, a correction and then yet another bull run into 2025 is in the cards.
“In a vacuum, Bitcoin’s chart makes the argument for a run into 2023 + sideways 2023-2024 correction + run into 2025.
But even the potential of a 2023 secular equities top will have me watching from the sidelines in 2024 to see just what degree of correction we’re in for.”
TechDev adds that a historically accurate bottom signal just flashed for Bitcoin. According to him, the NASDAQ bouncing off its 200-week exponential moving average (EMA) while the True Strength Index does an upward cross has been a prime opportunity for BTC bulls in the past.
The True Strength Index is a variation of the widely used Relative Strength Index (RSI) that aims to measure whether an asset is oversold or overbought.
“The NASDAQ’s first weekly True Strength cross after bouncing from its 200W EMA has marked some decent Bitcoin entries over the last 12 years.”
At time of writing, Bitcoin is trading at 23,045, down 3% on the day.