Bitcoin (BTC) and Ethereum (ETH) have had a strong correlation since 2018, despite the appearance of a new bull run last year, as Skew acknowledged.
The crypto data provider explained:
“A regime of high correlation 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 echoed these sentiments that the relationship between BTC and other crypto assets such as Ethereum and Litecoin was above 60%.
For example, the recent market crash caused Bitcoin to lose more than half its price from highs of $ 64.8k to lows of $ 30k. On the other hand, Ethereum lost half of its market capitalization after hitting an all-time high (ATH) of $ 500 billion, while its price fell to lows of $ 2,000 from highs of $ 4,350.
Furthermore, Google search volume for BTC and ETH reached the highest point this year.
Bitcoin struggles to rise above the 200-day MA
The recently experienced BTC price drop caused its price to drop below the 200-day moving average (MA) indicator, and this was a trend that had not been seen since March 2020.
The 200-day MA is a line that shows the average closing price of the last 200 days or roughly 40 trading weeks.
Bitcoin therefore continues to float below this indicator as alluded to by market analyst Lark Davis.
Bitcoin’s significant on-chain resistance level is $ 43.6k
According to on-chain metric provider IntoTheBlock:
“The IOMAP indicator reveals that the $ 43.6k level is the next big on-chain resistance level for Bitcoin, with 333k addresses holding over 133k BTC.”
Bitcoin was trading at $ 35,640 and Ethereum at $ 2,453 at the time of writing, according to CoinMarketCap.
So it remains to be seen whether the top two cryptocurrencies will regain momentum to continue their impressive bull runs for the remainder of the year.
Image Source: Shutterstock