Analyst: this unorthodox factor shows a crypto bull may soon make a strong return

While most analysts remain divided over the answer to this pressing question, one unorthodox factor suggests Bitcoin and the rest of the cryptocurrencies have found or are very close to a local bottom, suggesting a price recovery is imminent.

In a tweet published Feb. 27, Josh Olszewicz, an analyst at industry data site Brave New Coin, suggested that every time the "VIX is up, crypto has bottomed."

CryptoSlate created the below chart to show that the past two times the VIX has been around this level, BTC found itself around at a macro bottom and local bottom, respectively.

CarpeNoctom suggested spikes in the VIX correlate with Bitcoin bottoms.

The time before that was at the start of February 2018, when a spike in the VIX past 30 marked a local Bitcoin bottom at $6,500 after it plunged from the $20,000 bull market highs.

Even short-term spikes in the VIX have lined up with local bottoms in Bitcoin, like when the VIX reached 25 in July 2019, lining up with BTC rebounding after it fell to $9,500.

These more muted instances may be more of a coincidence than the larger surges in volatility in the stock market seemingly correlating with Bitcoin bottoms.

Regardless, should history repeat itself, Bitcoin will soon bottom, then return higher as buying pressure begins to pick up again.

This isn't the only sign the crypto market has found a bottom.

The fact Bitcoin defended the support confluence - which includes the 200-day moving average, 20-week moving average, a Point of Control, and a CME gap - suggests that the asset may have found enough support to establish a bottom.