For the first time in years testing the .6 Correlation Barrier
This correlation is between BTC Price and Alt Coin MCap (1/btc.d)
High Correlation means Big investors buying BTC buys into Alt Coins WITH BTC rather than retails buying BTC and Hodling for short term or retails buying ALTs with Fiat.
Correlation tested .6 as per my previous post 1 month ago multiple times only to fail that level meaning Investors dumped Alts to realize their gains then dumped BTC for double combo profit. Another reason why this correlation failed was that the pump was not synthetic as in tether was used to artificially pump the market causing a massive dump afterwards.
20k run was the only bull run that passed above this .6 correlation level which showed constant inflow to BTC and THEN Alts, so the money was "locked" inside the ecosystem which sustained the upward parabolic movement throughout the bull cycle.
Now that we are testing above .6 correlation levels once again after years, it must be closely watched WHETHER this .6 correlation barrage is sustained as a support.
The holding support will indicate that the big investors who bought BTC WILL STAY in Altcoins (which they bought WITH BTC) (mostly LTC and ETH maybe XRP) locking the money inside the crypto-market.
Breaking of this support will indicate big money realizing their gains FIRST from Alts to BTC then from BTC to Fiat.
Happy macroing.
Note: Always Remember that the fundamentals stays the same whether whales manipulate or not in the short term.
High Correlation means Big investors buying BTC buys into Alt Coins WITH BTC rather than retails buying BTC and Hodling for short term or retails buying ALTs with Fiat.
Correlation tested .6 as per my previous post 1 month ago multiple times only to fail that level meaning Investors dumped Alts to realize their gains then dumped BTC for double combo profit. Another reason why this correlation failed was that the pump was not synthetic as in tether was used to artificially pump the market causing a massive dump afterwards.
20k run was the only bull run that passed above this .6 correlation level which showed constant inflow to BTC and THEN Alts, so the money was "locked" inside the ecosystem which sustained the upward parabolic movement throughout the bull cycle.
Now that we are testing above .6 correlation levels once again after years, it must be closely watched WHETHER this .6 correlation barrage is sustained as a support.
The holding support will indicate that the big investors who bought BTC WILL STAY in Altcoins (which they bought WITH BTC) (mostly LTC and ETH maybe XRP) locking the money inside the crypto-market.
Breaking of this support will indicate big money realizing their gains FIRST from Alts to BTC then from BTC to Fiat.
Happy macroing.
Note: Always Remember that the fundamentals stays the same whether whales manipulate or not in the short term.
Comment:
The red vertical line is the halving.
Price action prediction is based around the previous halving cycles which may not hold true, thus definitely not a trading advice!
Take caution.
Price action prediction is based around the previous halving cycles which may not hold true, thus definitely not a trading advice!
Take caution.
In case this happens for the first time in history we will witness not only the correlation hold above .6 as BTC will pump along with ETH as well, but also the healthiest parabolic moves of them all. Corrections WILL happen but not as drastically as some people predict.