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After some consolidation and pullback over the last two days, the world’s largest cryptocurrency Bitcoin (BTC) is back in action shooting another 6% today and moving past $25,750 levels. With this, Bitcoin extends its weekly gains by close to 30%.
Bitcoin has been leading with confidence outperforming all other altcoins over the last week. As the banking crisis unfolded across America and Europe, investors preferred Bitcoin over the rest of the cryptocurrencies. As on the technical chart, BTC’s recent price action shows a breakout from the macro downtrend resistance.
#BTC is right back at the Macro Downtrend resistance$BTC #Crypto #Bitcoin pic.twitter.com/T7GiQL8Hul
— Rekt Capital (@rektcapital) March 16, 2023
Popular crypto analyst Rekt Capital explains:
“Technically, if #BTC just holds the highs heading into April, it will naturally just break the Macro Downtrend. A breakout past the #BTC Macro Downtrend would confirm a new Bull Market and in turn confirm that November 2022 was the bottom”.
Today’s BTC price action comes following the renewed bullishness on Wall Street on Thursday, March 16. Yesterday, all top three Wall Street indices registered strong gains with the Nasdaq 100 ending trading 2.69% in the green.
Bitcoin and Nasdaq 100
Since Bitcoin has a close correlation with Nasdaq 100, the BTC price too followed the gains. In fact, Bitcoin has significantly outperformed Nasdaq 100 so far this year in 2023. The BTC price is up by more than 60% year-to-date while the Nasdaq Composite is up by only 15.21%. As per the data from CoinShares, BTC’s correlation to Nasdaq 100 has dropped to a one-year low.
Bitcoin correlation to the Nasdaq falls to 34%, the lowest since the @federalreserve signaled hiking at the start of 2022.
This decorrelation could continue as the Fed rate hikes slow, further anchoring Bitcoin as an interest rate sensitive asset. pic.twitter.com/i3xFF6FTcm
— CoinShares (@CoinSharesCo) March 8, 2023
Furthermore, on-chain data shows strong network growth for Bitcoin despite the massive volatility in the crypto market currently. As per on-chain data provider Santiment, “the total amount of $BTC addresses has grown by 1.71M, a 3.95% increase in a relatively short period,” over the last two months.
Furthermore, Santiment data also shows massive whale transactions and deposits of more than $1 billion in Bitcoins. The data provider noted: “A $1B Bitcoin transaction has been sent to 3M219KR5vEneNb47ewrPfWyb5jQ2DjxRP6. This is the largest $BTC on-chain transaction of the year. The address held a high of 143,310 $BTC in October, was emptied out in November, and is now back to 40,141 $BTC.”