Bitcoin Price Rebounds to $11.6K as VIX Is 'Extremely Bullish'

Bitcoin soared past the key technical resistance level of $11,500 and past $11,600 on Aug. 5 as a fresh round of bullish sentiment canceled out more of last weekend's plunge.

Excitement remains palpable for Bitcoin, which has spent the week slowly patching up losses after it fell $1,200 from highs of $12,000 on Sunday.

Fed may unleash "Wildly bullish" environment for safe havensBitcoin could surge higher if the United States Federal Reserve seeks to raise inflation in a move that "Doesn't make any sense."

This, as CNBC reported on Aug. 4, would mean the Fed sticks to lower interest rates for the year in order to get inflation to a target of 2%. Annual inflation to June 2020 was 0.6%.As a result, recent all-time highs for safe-haven assets should continue, with gold, silver and potentially Bitcoin all feeling the benefits of the Fed's measures.

Edward Yardeni, president of Yardeni Research, told the publication that a 2% inflation target would see "Real yields persistently lower, the dollar lower, volatility lower, credit spreads lower and equities higher."

Bitcoin has recently copied safe-havens' record rise, with press-time levels passing $11,600 on the back of quarterly gains of almost 60%.As Cointelegraph reported on Wednesday, multiple statistics show a surge of interest and investment in the cryptocurrency over the past few months.

VIX trend means Bitcoin stays "Extremely bullish"Summarizing the plans, Gabor Gurbacs, a strategist at Bitcoin-friendly investment manager VanEck, painted a grim future for the U.S. dollar and those who hold it.

Another indicator of potential further gains for Bitcoin came in the form of its relationship to the VIX volatility index this week.

"Historically extremely bullish for BTC," he tweeted.

VIX is derived from the activity on the S&P 500, a stock market with which Bitcoin has historically demonstrated up to 95% correlation.