Speaking of Correlation
In the Above picture we can see the Correlation factors for some of the more popular Cryptos.
Notice how BTC remains highly correlated with ETH at .84 and BNB at .74 and LTC at .73.
Consider BTC, ETH and LTC were the THREE MAJORS for a very long time. It’s not surprising that they are correlated heavily during this time.
Now, look at OMG. The correlation with Bitcoin is only .34 and OMG has a .66 correlation with XTZ.
These are opportunity coins if Bitcoin is to begin dumping or if Bitcoin is to stay sideways.
Macro Bitcoin Volume
Unfortunately, yesterday was one of the lowest Volume days of the year and we currently remain below the 30 Day Average.
Average Volume is generally measured at 20 Days – that is perfect for the Traditional Market but not so much for the Crypto Market, which trades 24/7/365/ Because of that, we use a 30 Day Average in reference to Volume when looking at the Daily Chart.
There is one thing to note here, we are sideways in average volume. We are not trending up or trending down.
Volume is also not correlated to price – by this, I mean that if the Volume is going up – it only means that there is more interest in Bitcoin. That interest could be Buying or Selling.
The dominance continues its trend under 50 and well below 60. We have been approaching a trendline that may prove to have some significance once we actually reach it. Even without the trendline, we are looking near 46.2 for some action.
A push through 46 leads to the inevitable test at 50. Rejection at 50 should lead to some good opportunities with some major Alts.
Bitcoin Weekly S/R
Weekly levels remain relatively unchanged. A Push down to the $51,800 area would not be surprising as we have some untested Support levels down there while a push to $59K would be the next major target area for the Bulls to reach.
Above $59K is the current ATH – after that, we enter Price Discovery.