Rare market volatility signal points to higher Bitcoin price in 6 to 12 months — Dan Tapiero
On April 7, the VIX (VIX) volatility index displayed a rare peak at 60, a level considered as a barometer of fear and extreme uncertainty of the market. According to Dan Tapiero, CEO of 10tfund, the VIX has only reached 60 times in the past 35 years, and the data suggests a rebound for risk assets such as Bitcoin (BTC) in 6 to 12 months.
The VIX, which is widely considered as a “gauge of fear”, reflects the expectations of investors of the turbulence of the market based on trading of S&P 500 options. As illustrated in the graph, extreme peaks were observed in 2008 and 2020, generally coinciding with the stockings, where sellers focused on panic opened the way for the entrances to the generational market.
In light of this, Tapiero argued that the current tip is not different, with the worst fears of the market, “the price”, preparing the land for a positive future. Tapiero said that “the chances favored a better future”.
Likewise, Julien Bittel, responsible for macro-research at Global Macro Investor (GMI), argued the complaint of Tandiero and declared that technological actions were the most occurred since the COVVI-19 crash, with more than 55% of the shares of the NASDAQ 100 displaying a 14-day RSI below 30. Such a market signal only occurred during major crises Brothers Challapse and 2020 COOVIvin.
Bittel explained that after the VIX had touched 60 years last week, it involved maximum uncertainty, which generates fear in the minds of investors. By briefly approaching the US Investors Intelligence Survey, Bittel compared the current bullish feeling of 23.6% with the lowest reading since December 2008.
In addition, respondents in the American Association of Individual Investors (AAII) survey are currently 62% lowering, reflecting the highest lower reading since March 2009. Bittel said, said, said
“In other words, we are back at the same levels of fear that have marked the bottom of the equity market after the global financial crisis.”
This widespread fear, alongside a rare point of VIX, sets up market entries in assets such as Bitcoin, because recovery of market liquidity will inevitably return to risky assets.
Related: SAYLOR, the “stronger hands” of investors ETF help to stabilize Bitcoin – Analyst
The analyst warns that Bitcoin Vix trends are lowered
While macroeconomic experts have underlined the possibility of a bullish result for risk assets, the Tony Severino market analyst suggested that the Bitcoin / Vix ratio could also lead to a lower market. In a recent post, Severino predicted that Bitcoin could have already culminated this cycle, but remained open on a possible change of opinion by the end of April.
As illustrated in the graph, Severino noted a sales signal in early January. The analyst used the Elliott wave theory model to identify the current lowering conditions and said it was still early to say that Bitcoin will become bullish according to the VIX correlation.
Related: Bitcoin price volatility “imminent” while speculators move 170k BTC – cryptocurrency
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
