A delicate balance for Bitcoin price could still resolve in any case, says Delphi Digital as markets navigate a unique environment pre-halving.
Bitcoin (BTC) is flipping its 50-day moving average (MA) to support and eyeing $7,200 for a “potential breakout,” a new report has concluded.
Published on April 22, Delphi Digital’s latest market report concluded that signs were turning more bullish for BTC/USD.
Dollar “refuses to collapse”
Having regained $7,000 on Wednesday, the pair managed to broadly preserve its position above the 50MA, which had previously acted as resistance.
Bitcoin 1-day price chart. Source: Coin360
“After a few weeks of consolidation, bitcoin appears to be eyeing a potential breakout around $7,200 and seems to be finding some support in its 50-day MA after breaching it at the end of last week,” the report reads.
Continuing, Delphi warned of a cocktail of negative influences for traditional markets, made worse by this week’s historic crash in oil prices.
“Oil’s price collapse only adds to mounting deflationary pressures as weak demand and evaporating cash flows go head-to-head with unprecedented relief efforts,” it said.
“The dollar refuses to break despite the Fed’s best efforts to pump the system with liquidity.”
All eyes on VIX vs. BTC
As Cointelegraph reported, Bitcoin remains susceptible to stock market volatility, but nonetheless is pushing to regain its start-of-year position at $7,200. Should it succeed, in-house analyst filbfilb forecast, more upside could be in store before May’s pivotal block reward halving.
A survey of Cointelegraph readers revealed an even split in sentiment over which way Bitcoin will go in the coming weeks, and whether the halving or traditional market pull will dictate trajectory.
CBOE VIX volatility 3-month chart. Source: TradingView
On the topic of volatility, Delphi noted that the Bitcoin versus VIX volatility chart was a relationship worth watching.
“The VIX index has gradually declined from fresh record highs last month, which tends to be supportive for BTC,” the report adds.
“Any disruption to the recent *relative* calm, however, could serve as a short-term headwind for Bitcoin if history serves as any guide.”