It Had Previously Worked on Bitcoin: Wall Street's Popular Data Points to a Bottom! - Coin Bulletin

Bitcoin (BTC) and the critical ratio between Wall Street's fear index VIX has signaled that the BTC price has reached a long term dip level.

In global markets, there has been significant volatility since April 3 due to the uncertainty created by the tariffs imposed by US President Donald Trump. During this period, serious waves of selling have been observed in the stock and bond markets, while gold prices have reached all-time highs. The DXY index, which shows the strength of the US dollar, has fallen below 100 for the first time since July 2023.

The S&P Volatility Index (VIX), an important measure of fear in the markets, has risen to its highest level since August 2024. The interesting point is that the critical indicator comparing the price of Bitcoin to the VIX index has currently reached 1.903. This ratio is re-testing a trend line that previously indicated long term dip levels for Bitcoin.

Is a rise for Bitcoin on the horizon?

The Bitcoin/VIX ratio has touched this trend line in a similar way three times in the past, and then strong rallies began. The first of these touches occurred in August 2015, and the other took place in March 2020 at the peak of the COVID-19 crisis. Most recently, it was seen when the Japanese Yen carry trade ended and the Bitcoin price dropped to around $49,000.

Considering this data, it is thought that the price of Bitcoin may have reached a long term dip level again and could be ready for an upward trend. If the trend line support in the Bitcoin/VIX ratio maintains its reliability, new doors for a bull market may open for cryptocurrency investors.