Bitcoin Loses Correlation with Commodities Market Amid Geopolitical Tensions
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The correlation between the benchmark cryptocurrency and precious metals has dropped to a seven-month low, according to recent data from IntoTheBlock. The blockchain and crypto analytics platform revealed yesterday that:
“Bitcoin correlation with Gold, Silver, and Platinum are showing their lowest correlations since August of 2021.”
Meanwhile, Sharpe and Sortino ratios, which highlight how well an investment performs compared to a less risky investment, show that commodities have responded better to volatility compared to Bitcoin and Ethereum.
Regardless, on-chain data shows that most BTC holders remain unfazed by the intense volatility in the market, as the number of addresses HODLing the cryptocurrency for over a year hit a new record high. IntoTheBlock reported:
“The majority of the #Bitcoin holders remain unfazed by the recent price movements. The number of HODLers – addresses holding >1y is currently at an ATH and has been increasing consistently. They represent 57% of all holders in $BTC.”
Apart from that, reports also showed that the number of wallets accumulating BTC is on the rise as non-zero BTC wallets recorded a new peak last week.
Key Bitcoin Levels to Watch — March 8
Over the past 24 hours, BTC has regained some decent upward traction as it returns to the $39K area amid a market-wide recovery. However, the benchmark cryptocurrency appears to be struggling with the $39K resistance and has now dropped to the $38.5K support. This mild correction comes after a prolonged consolidation under the $39K resistance.
That said, the current candle could represent the start of a bearish move considering the ongoing formation of a bear flag on the hourly chart. If BTC fails to hold the mentioned support level over the coming hours, we could see a bearish move to the $37.5K base in the near term.
Meanwhile, my resistance levels are at $39,000, $40,000, and $41,000, and my key support levels are at $38,500, $38,000, and $37,000.
Total Market Capitalization: $1.72 trillion
Bitcoin Market Capitalization: $729.6 billion
Bitcoin Dominance: 42.2%
Market Rank: #1
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