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Since the last week of February, the association between Bitcoin and Tezos has been increasing. However, as the end of March approached, a weak correlation morphed into a very strong positive correlation, and this is still the case at the time of publishing. With the exception of a fleeting fall to $56,800 triggered by cascading liquidations, Bitcoin has effectively defended the $58,000 mark in recent days. Tezos, based on the strong link, may be training for the next northward leg as well.
Tezos 12-hour chart
On the 12-hour scale, XTZ broke out past the range highs (dashed, blue) at $4.45, climbed to $4.73, and then pulled back to retest the range highs as help. This reinforced its move to a demand zone, with XTZ rising to $5 in recent hours.
The long-term preference for XTZ was clearly bullish – the consolidation followed by a breakout back towards the ATH was supported by consistent buyer interest. The $5 field is planned to be transformed to help in the coming days. This situation is likely to fuel consumer interest in XTZ, and buying momentum could propel the stock to a new high in the coming weeks.
Since falling to $3.1 in late February, the OBV has been steadily increasing. This was also the point from which Bitcoin fell from $61,800. The upward trajectory of the OBV suggested that investors have been slowly arriving since the decline.
During the month of March, the RSI was oscillating around neutral 50, and it has recently risen sharply to record a value of 65 at the time of publishing. The Stochastic RSI was in overbought territory, and some consolidation below $5 is likely before a breakout north.
The 12-hour and higher timeframes revealed that leverage was in favour of the bulls, who had genuine support in the form of buyer demand. The $5 psychological standard will be a stumbling block, but Tezos is expected to break through and set a new ATH in the coming weeks. A bullish Bitcoin adds to the bullish forecast for XTZ.