Bitcoin ( BTC ) is shifting its 50-day moving average (MA) to support and is targeting $ 7,200 for a “potential increase”, a new report has concluded.
Released on April 22, Delphi Digital's latest market report concluded that the signals were getting more encouraging for BTC / USD.
The Dollar “refuses to collapse”
After regaining the $ 7,000 mark on Wednesday, the pair managed to largely preserve its position on the 50MA, which had previously acted as resistance.
Bitcoin price chart in one day. Source: Coin360
“After a few weeks of consolidation, bitcoin appears to be showing a possible surge around $ 7,200 and appears to be finding some level of support in its 50-day MA after surpassing it late last week,” the report says.
“The collapse of the oil price only adds to mounting deflationary pressures as weak demand and evaporating cash flows face unprecedented relief efforts,” he says.
“The dollar refuses to collapse despite the efforts of the Federal Reserve to inject liquidity into the system”
All eyes are on VIX vs. BTC
As Cointelegraph reported , Bitcoin remains susceptible to stock market volatility, but is pushing to regain its year-end position of $ 7,200. If successful, in-house analyst filbfilb predicted that there could be more gains ahead of the May halving.
A survey of Cointelegraph readers revealed a uniform split in sentiment on which path Bitcoin will take in the coming weeks, and whether halving or traditional market push will dictate the trajectory.
3-month CBOE VIX volatility chart. Source: TradingView
On the subject of volatility, Delphi indicated that the volatility graph of Bitcoin versus VIX was a relationship worth noting.
“The VIX index has gradually declined from the new all-time highs of last month, which tends to support BTC,” the report added.
“However, any disruption to the recent * relative * calm could serve as a short-term headwind for Bitcoin if history serves as a guide.”