The bitcoin to VIX ratio has reached a long-term trendline, which historically indicates a potential bottom for bitcoin prices amidst current market volatility. With the S&P Volatility Index at its highest since last August, this trendline suggests that bitcoin could be poised for a long-term bullish reversal, following patterns observed during previous market downturns.

Increased volatility in Bitcoin and Ethereum followed the escalation of the Israel-Iran conflict, leading to a dip below $99,000 for Bitcoin. Despite bearish short-term sentiment, analysts suggest long-term catalysts and growing adoption may support a recovery, with significant market events on the horizon.

Bitcoin reached $111,400, approaching its record high of $112,000 amid a broader crypto rally, with Ethereum also seeing a notable 6% increase. Analysts suggest that declining volatility and a quiet market setup could indicate a bullish trend ahead for Bitcoin and Ethereum. Liquidations of leveraged short positions also contributed to the price movements in the crypto market.