Bitcoin (BTC) has triggered a powerful technical signal that could push the leading digital currency to $170,000, based on historical returns.
Specifically, BTC has flashed the ‘Ultimate VIX Bottom Signal,’ a rare occurrence that has consistently marked long-term bottoms in Bitcoin’s price cycle, according to an analysis by prominent online cryptocurrency analyst TradingShot.
This signal is based on the BTC/VIX ratio, which compares Bitcoin’s price action to the Volatility Index (VIX), which measures market fear.
In an X post on April 15, the analyst noted that the ratio has made direct contact with a 10-year trendline of higher lows, which has acted as a launching pad for Bitcoin on multiple occasions.
Similar touches occurred on August 24, 2015, March 16, 2020, and August 5, 2024. Each of these instances was followed by aggressive rallies, with the “weakest” still producing an impressive gain of approximately 100%.
Each time this ratio rebounded off the trendline, Bitcoin followed with a significant surge.
Bitcoin’s next possible stop
Given this historical context, TradingShot suggested that a similar move could see Bitcoin reaching at least $150,000 during its next major advance.
While no technical signal guarantees future results, the consistency of this pattern offers a compelling case for bullish momentum, especially with Bitcoin still trading below its all-time highs.
Notably, after days of consolidation, Bitcoin is currently showing strength in the short term after reclaiming the $85,000 resistance level.
However, overall sentiment remains subdued, with market observers noting that for the asset to make any decisive move, it needs to breach the $90,000 mark.
At the same time, as reported by Finbold, another analyst warns that in the short-term Bitcoin is also at risk of a short-term pullback after flashing a sell signal based on the TD Sequential indicator on the 1-hour and 4-hour time frame, making a drop to $75,000 a likely prospect.
Bitcoin price analysis
At press time, Bitcoin was trading at $85,680, up 1.4% in the last 24 hours. On the weekly chart, the asset has rallied over 7%.
As things stand, Bitcoin’s sentiment can be considered neutral to mildly bullish in the short term, and at the current price, the asset is trading slightly above its 50-day simple moving average (SMA) of $84,902 but just below the 200-day SMA of $86,714. The 14-day Relative Strength Index (RSI) stands at 52, indicating neither overbought nor oversold conditions.
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