Recent Bitcoin news from Bitbo suggest that the Bitcoin (BTC) Volatility Index (VI) has hit a six-month high at 2.75%, showing the cryptocurrency’s unstable outlook.
Historical data shows that the Bitcoin price is experiencing greater-than-usual fluctuations.
Bitcoin News: Volatility Index and Outlook
The BI indicator reflects the coin’s price changes amid macroeconomic shifts. Earlier this year, the VI was 1.98 as of January 1.
Amid the fluctuations between higher highs and lower lows, the VI dropped to a six-month low of 1.5 as of February 25. From here, Bitcoin volatility picked a steep rally until it hit its peak of 2.75 at the time of writing.
In cases of high volatility, traders and investors become jittery and reactive to market news, including macroeconomic factors like interest rates and inflation.
Notably, the Donald Trump-triggered trade war has had a resounding impact the recent Bitcoin price movement.
However, some investors may view high volatility as the best time to profit from price movements.
Is BTC in a Bear Market?
According to CryptoQuant CEO Ki Young Ju, it is still too early to determine if Bitcoin has entered a bear market, despite bullish Bitcoin news. He emphasized that the demand for Bitcoin appears stuck but does not imply a bear market.
Bitcoin price is currently trading for $84,818, following a 5.41% uptick in the last 24 hours. Compared to a few hours ago, when the coin was around $77,000, this price level suggests a steady climb in a classic show of the Volatility Index at play.
The flagship cryptocurrency’s weekly chart still demonstrates bullish signals. BTC is maintaining its uptrend and has not breached its key resistance levels.
There are still a few lagging technical indicators, like the MACD, which is now pointing downward and is yet to show clear signs of breakout.
Despite this outlook, Bitcoin’s price action maintains a constructive sentiment overall. So far, the bulls are in control, evidenced by the sustained higher lows and resilience.
Once the coin’s price can hold above key levels and momentum remains intact, the bullish signal may persist and favor mid-term BTC holders.
Eventually, pullbacks could become areas for accumulation instead of signs of weakness.
Key Bitcoin Price Levels to Watch
Crypto analyst Matthew Hyland sees $89,000 as critical for Bitcoin’s uptrend.
“The only way for Bitcoin to confirm that the bottom is actually in would be to close a weekly back above $89K,” he said, citing that failure to reclaim this level could lead to a drop to $74,000 or even $69,000.
On the other hand, if Bitcoin can push above this $89,000 level, the market could experience renewed bullish momentum.
Most of BTC’s price drop has been attributed to uncertainty around U.S. inflation rates and trade tensions. Recently, Federal Reserve Chair Jerome Powell reiterated that he was in no rush to adjust interest rates, this could promote positive Bitcoin news and price action.
Many in the market are beginning to question BTC’s role as a safe-haven asset compared to Gold. On March 14, Gold traded above $3,000 for the first time in history.
With a YTD growth of over 34%, gold has outshined Bitcoin’s 10% decline. However, top proponents like Michael Saylor see potential in the coin to rally in the future.
The post Bitcoin News: Volatility Index At 6-Month High, Here’s Implication For Price appeared first on The Coin Republic.
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