Divergence between ETH and BTC?
Updated
Are you worried?
ETHUSD
Price action pros and cons
Bull Case:
Trading with in rising channel
Holding above 200sma
Holding above 50sma
Consolidating between $155 and $188\
Lack of strong selling pressure
Bear Case:
Difficulty staying above the 20sma
Lack of strong buying pressure
Stoch and AO still have room to move on the downside
Alt coins considerable weaker than Bitcoin
Correlations:
DATE BTC-LTC BTC-ETH ETH-LTC
1/16 ... 0.73 ... 0.26 ... 0.29
4/16 ... 0.94 ... -0.06 ... -0.06
7/16 ... 0.76 ... 0.06 ... -0.08
10/16 ... 0.67 ... 0.38 ... 0.22
1/17 .... 0.65 ... -0.01 ... -0.01
4/17 ... 0.20 ... 0.27 ... 0.1
7/17 ... 0.38 ... 0.19 ... 0.08
10/17 ... 0.64 ... 0.74 ... 0.65
1/18 ... 0.26 ... 0.13 ... 0.67
4/18 ... 0.77 ... 0.76 ... 0.74
7/18 ... 0.93 ... 0.92 ... 0.90
10/18 ... 0.83 ... 0.74 ... 0.87
1/19 ... 0.90 ... 0.88 ... 0.91
4/20 ... 0.86 ... 0.90 ... 0.82
Several articles have likened the recent lagging performance of altcoins to the situation they experience in Jan 2017. The articles have basically pointed out that traders will soon be selling there BTC to buy the cheaper altcoins, such as LTC and ETH. However, I would like to point out how the crypto environment has changed over the last couple of years. Before 1/17 there was often a negative correlation between BTC and the altcoins, but since 4/18 the correlation between the coins has been greater than 0.75. As a quick reminder: altcoins that approach 1 are closely correlated with Bitcoin, altcoins around 0 are not correlated with Bitcoin, and altcoins that approach -1 are inversely correlated with Bitcoin. This measurement is known as Spearman’s rank correlation coefficient. Thus, in this current highly correlated environment we as traders would be wise to keep our eyes on the leaders to predict future price action.
Comment and Feedback Welcomed!
ETHUSD
Price action pros and cons
Bull Case:
Trading with in rising channel
Holding above 200sma
Holding above 50sma
Consolidating between $155 and $188\
Lack of strong selling pressure
Bear Case:
Difficulty staying above the 20sma
Lack of strong buying pressure
Stoch and AO still have room to move on the downside
Alt coins considerable weaker than Bitcoin
Correlations:
DATE BTC-LTC BTC-ETH ETH-LTC
1/16 ... 0.73 ... 0.26 ... 0.29
4/16 ... 0.94 ... -0.06 ... -0.06
7/16 ... 0.76 ... 0.06 ... -0.08
10/16 ... 0.67 ... 0.38 ... 0.22
1/17 .... 0.65 ... -0.01 ... -0.01
4/17 ... 0.20 ... 0.27 ... 0.1
7/17 ... 0.38 ... 0.19 ... 0.08
10/17 ... 0.64 ... 0.74 ... 0.65
1/18 ... 0.26 ... 0.13 ... 0.67
4/18 ... 0.77 ... 0.76 ... 0.74
7/18 ... 0.93 ... 0.92 ... 0.90
10/18 ... 0.83 ... 0.74 ... 0.87
1/19 ... 0.90 ... 0.88 ... 0.91
4/20 ... 0.86 ... 0.90 ... 0.82
Several articles have likened the recent lagging performance of altcoins to the situation they experience in Jan 2017. The articles have basically pointed out that traders will soon be selling there BTC to buy the cheaper altcoins, such as LTC and ETH. However, I would like to point out how the crypto environment has changed over the last couple of years. Before 1/17 there was often a negative correlation between BTC and the altcoins, but since 4/18 the correlation between the coins has been greater than 0.75. As a quick reminder: altcoins that approach 1 are closely correlated with Bitcoin, altcoins around 0 are not correlated with Bitcoin, and altcoins that approach -1 are inversely correlated with Bitcoin. This measurement is known as Spearman’s rank correlation coefficient. Thus, in this current highly correlated environment we as traders would be wise to keep our eyes on the leaders to predict future price action.
Comment and Feedback Welcomed!
Note
Still long and strong
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