One of the most important intermarket relationships in crypto is BTC vs the VIX index. This is one of the tools I utilize weekly to try and position myself correctly in the market. So what does this chart tell us? Let's lay it out in 3 easy steps!
1. Well it has been our guide for upside targets as we went long until the gap filled. Once the gap filled, we took down our BTC exposure (see related idea 1 - taking some risk off).
2. Then we have a classic failure at the multi year trend line. We were watching this carefully. Once the market failed at the resistance, we buy some VXX!
3. Right now, we are looking for exit points. We have exited most of our BTC short (see related idea 2 - flip it upside down). We exited 66% at the 50% retracement. The 61.8% fib retracement looks like a great exit for the rest of the long VXX and short BTC.
Next step is finding BTC entries! We won't know for sure, but it could be around the 61.8 and 72.6 fib levels.
Happy Trading!
1. Well it has been our guide for upside targets as we went long until the gap filled. Once the gap filled, we took down our BTC exposure (see related idea 1 - taking some risk off).
2. Then we have a classic failure at the multi year trend line. We were watching this carefully. Once the market failed at the resistance, we buy some VXX!
3. Right now, we are looking for exit points. We have exited most of our BTC short (see related idea 2 - flip it upside down). We exited 66% at the 50% retracement. The 61.8% fib retracement looks like a great exit for the rest of the long VXX and short BTC.
Next step is finding BTC entries! We won't know for sure, but it could be around the 61.8 and 72.6 fib levels.
Happy Trading!
