Bitcoin (BTC) and ether (ETH) have had a strong correlation since 2018, although a new bull run surfaced last year, as Skew has confirmed.
The crypto data provider explained::
“A high correlation regime between BTC and ETH started in 2018 and has persisted until now despite the start of a new upward cycle last year.”
Messari crypto researcher Mira Christianto recently reiterated these assessments that the relationship between BTC and other crypto assets such as Ethereum and Litecoin was over 60%.
For example, the recent market crash caused Bitcoin to drop more than half of its price from highs of $ 64.8,000 to lows of $ 30,000. Ethereum, on the flip side, lost half of its market cap after hitting an all-time high (ATH) of $ 500 billion while its price fell to lows of $ 2,000 from the highs of $ 4,350.
In addition, the search volume on Google for BTC and ETH reached the highest point this year.
Bitcoin is struggling to rise above the 200-day MA
BTC’s drop The recent price saw the price fall below the 200-day moving average (MA) indicator, and this trend has not been seen since March 2020.
The 200-day MA is a line that shows the average closing price over the last 200 days, or approximately 40 weeks of trading.
Bitcoin therefore continues to hover below this indicator as indicated by market analyst Lark Davis.
Bitcoin’s significant resistance in the chain is $ 43.6k
according to to the on-chain metrics provider IntoTheBlock:
“The IOMAP indicator shows that the $ 43.6K level is the next major level of resistance in the chain for Bitcoin. 333K addresses hold over 133K BTC.”
Bitcoin was trading at $ 35,640 and Ethereum at $ 2,453 at the time of writing CoinMarketCap.
It therefore remains to be seen whether the top two cryptocurrencies will regain momentum to continue their impressive bull runs for the remainder of the year.
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