Bitrabo Editorial
The VIX has become a hot topic in finance as it hits some of its lowest levels in years. Interestingly, when comparing the BTCUSD chart against the VIX, it paints a different picture of the crypto market gearing up for a potential explosive rally or a massive rejection.
Pressure on Crypto Market from SEC but Still Ready to Explode
The crypto market is under selling pressure with Bitcoin’s value declining and the US SEC cracking down on enforcement actions against major players like Binance and Coinbase. The classification of several top altcoins as securities has created panic and pushed BTC towards its support level.
However, when you compare BTCUSD to the VIX, a strengthening relationship appears on the BTCUSD side. With the VIX falling, it would make sense for BTCUSD to see a bullish rally. Historically, a rising BTCUSD paired with a falling VIX led to a major surge in price.
The ratio looks ready for new highs | BTCUSD on TradingView.com
Why This Ratio Could Lead to a Significant Market Movement
The Volatility Index doesn’t predict the direction of volatility, but it does signal when it is imminent. Low levels of volatility could indicate a rise in risk assets. Additionally, the BTCUSD to VIX ratio is currently at a former all-time high resistance level that previously failed to hold as support. The crypto market could see a bullish rally if it breaks this resistance. If not, it could result in either a failure of BTCUSD or a massive move higher in VIX.
The chart originally appeared in CoinChartist VIP Issue #7.
#Bitcoin versus #VIX looks ready to blast off
Hit the link in bio to see a dozen more original, killer charts pic.twitter.com/yQZx2JHFNg
— Tony “The Bull” (@tonythebullBTC) June 9, 2023