Chart of the Week: Wall Street’s “Fear Gauge” Could Be Indicating a Bitcoin Bottom

Bitcoin Price Could Be Nearing a Bottom as VIX Ratio Shows Key Support

As global markets continue to reel from volatility, a specific technical indicator may suggest that Bitcoin is nearing a long-term price bottom.

The downturn in equities, triggered by President Donald Trump’s tariff-driven policy uncertainties, began on April 3 and has been marked by substantial price swings in both directions. The sell-off has affected stocks and bonds alike, while gold surged to new all-time highs, and the DXY Index dropped below 100 for the first time since July 2023.

Amid this chaos, the S&P Volatility Index (VIX)—known as Wall Street’s “fear gauge”—has spiked to its highest level since last August. Here’s where things take an interesting turn for Bitcoin.

Currently, the Bitcoin-to-VIX ratio stands at 1,903, touching a long-term trendline that has previously acted as a key support level. This trendline has been significant in the past, marking bottoms for Bitcoin, including during the unwinding of the yen carry trade when Bitcoin hit around $49,000.

This is the fourth time the Bitcoin-to-VIX ratio has touched this trendline. Past occurrences include March 2020, at the height of the COVID-19 panic, and August 2015, both of which preceded price rallies for Bitcoin.

If this trendline continues to hold as support, it could signal that Bitcoin has once again found a bottom, potentially setting the stage for a price rebound in the near future.