Renowned technical analyst Tony Severino has drawn attention to the recent Bitcoin/VIX index, asserting that it’s not as bullish as some may perceive. According to him, the current indicators suggest that the leading cryptocurrency is experiencing a bear market phase.
In a recent discussion, Severino cautioned that many in the crypto space are mistakenly interpreting the Bitcoin/VIX as a bullish sign. His technical analysis indicates that the current market signals are typically associated with Bitcoin bear markets. Nonetheless, he also noted that the month isn’t over, implying that these indicators could yet shift towards a bullish trend.
Previously, Severino detailed several reasons for his diminished bullish sentiment towards Bitcoin and other cryptocurrencies. He referred to BTC’s chart, which, based on the Elliott Wave theory and other technical indicators, suggested that the top-tier cryptocurrency might have peaked in this market cycle.
Contrarily, crypto analysts like Saeed have a more optimistic perspective on Bitcoin. Saeed argued that the current correction is merely a healthy retracement and that Bitcoin’s general trend remains bullish. He pointed out that Bitcoin needs to surpass a $85,000 threshold to achieve new highs.
Macro-level factors also seem favorable for Bitcoin. The recently released CPI and PPI inflation data, which came in below expectations, have raised anticipations of a Federal Reserve rate cut. It was further bolstered by Boston Fed President Susan Collins’ assurance that the US central bank is prepared to stabilize the market if required.
Given the ongoing tariff issues initiated by President Donald Trump, Bitcoin and other cryptocurrencies could potentially benefit if the US Fed intervenes, allowing more liquidity to flow into the market.
In a recent analysis, Titan of Crypto, another industry analyst, suggested that Bitcoin is forming an inverse Head-and-Shoulders pattern, although it’s yet to be validated. If this pattern emerges, Bitcoin could potentially hit a new all-time high of $125,000 this year.
Another analyst, Rekt Capital, noted that Bitcoin is forming another Higher Low on the Relative Strength Index (RSI), despite forming Lower Lows on the price. This could signal a bullish divergence, a positive sign for Bitcoin, as it often precedes price reversals to the upside.
As of this writing, Bitcoin’s price stands at approximately $83,400, showing an increase of over 3% in the last 24 hours, according to CoinMarketCap.
