Bullish Technical Divergence, Macro Looks Promising for 2023

Bullish-Technical-Divergence-Macro-Looks-Promising-for-2023

Despite the FTX-induced uncertainty, bitcoin is currently forming a bullish technical structure, as spot price (BTCUSD) and relative strength index (RSI) are diverging.

In normal conditions this structure would indicate a potential breakout from $16K. However the macro currently decides the spot price trajectory.

Despite of all the FTX-related bearishness, I'm generally positive towards bitcoin as we inch closer to 2023. Here's why:

-> The dollar index (DXY) has reached its peak. Weakening DXY will offer leeway to high-beta assets within bitcoin, crypto, DeFi, and Web3 spaces.

-> Peaking inflation.

-> Fed's potential pivot. Analysts like Luke Gromen are expecting the central bank Fed to pivot from QT to QE next year. The resuming inflow of "cheap" dollars will uplift most asset classes.

-> Bitcoin's upcoming halving. Bitcoin’s next halving is scheduled for block 840K, during the spring of 2024. If bitcoin follows the old trajectory, it could reach >$100K around the next halving.