{"id":436495,"date":"2020-08-27T21:00:03","date_gmt":"2020-08-27T21:00:03","guid":{"rendered":"https:\/\/ktsl888.com\/?p=436495"},"modified":"2024-06-11T14:15:40","modified_gmt":"2024-06-11T14:15:40","slug":"vix-red-flag-stocks-bearish-bitcoin","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/vix-red-flag-stocks-bearish-bitcoin\/","title":{"rendered":"VIX Raising “Red Flag” On Stocks, Could Be Bearish For Bitcoin"},"content":{"rendered":"
Analysts rely on a variety of tools<\/a> to tip them off about coming price action, with some offering better results than others. A top and bottom-sniping tool used to call the 2007 top in the stock market, is once again raising a red flag. Here’s why this could also be bearish for Bitcoin<\/a> and the rest of the cryptocurrency market.<\/p>\n The stock market pumped today on Jerome Powell’s monetary policy speech, while Bitcoin price tanked<\/a>.<\/p>\n The S&P 500 set yet another daily all-time high even as the economy struggles, unemployment soars, the GDP shrinks, and the pandemic rages on.<\/p>\n Most signs point to the stock market being in a bubble that is ready to burst<\/a>. Yet stimulus money has kept equities climbing to outrageous valuations.<\/p>\n Related Reading | Why Bitcoin Ditching Stock Market Correlation For Gold Is Bullish for BTC<\/a><\/strong><\/em><\/p>\n But as the stock market sets a new high, it has created a bearish divergence with the VIX volatility index, which one former hedge fund and investor, Jesse Felder, claims signals “an impending reversal.”<\/p>\n This reversal signal was the key to timing the 2007 top ahead of the Great Recession, and the 2009 bottom when things finally began to turn around.<\/p>\n The signal is back, and it could end up hurting Bitcoin and the rest of crypto as much as it crushes the stock market.<\/p>\n <\/p>\n The crypto bubble is long in the past<\/a>, but the greater financial market bubble continues to inflate.<\/p>\n The stock market has already recovered from its Black Thursday low completely and set a new all-time high on most major indices.<\/p>\n That day, crypto suddenly became tightly correlated to stocks<\/a>, and Bitcoin flash crashed by over 50% alongside the S&P 500, gold, and nearly every other asset.<\/p>\n The correlation with Bitcoin turned from stocks to gold, helping propel the entire crypto market cap towards its first sustainable recovery. But that now could be at risk, thanks to a bearish divergence on the VIX index.<\/p>\n Related Reading | This Tool Has Called Nearly Every Bitcoin Top, And It Just Triggered Again<\/a><\/strong><\/em><\/p>\nStock Market Raises “Red Flag” Warning Sign, Analyst Warns Of “Impending Reversal”<\/h2>\n
Volatility Index (VIX) Impact On Bitcoin (BTCUSD) & S&P 500 (SPX) | Source: TradingView<\/pre>\n
Bitcoin Bulls Beware: Crypto Collapsed The Last Time VIX Crushed Stocks<\/h2>\n