VET prove to have a low correlation to Bitcoin compared to others such as Litecoin and Ethereum as the pattern analysis show so let’s find out more in the upcoming Vechain cryptocurrency news.
During bull markets, the patterns usually tend to emerge between BTC and other altcoins which is why in this case of Vechain, VET proves to have a low correlation to the number one cryptocurrency. Many crypto traders and investors across the world are becoming more bullish with the markets as BTC remained resilient after breaking the $11,000. Usually, once a rapid increment in the value of BTC happens, it becomes a detrimental effect of altcoin pairs denominated in BTC. However, Vechain seems to not be affected as much by Bitcoin’s positive gains we are about to talk in the VeChain cryptocurrency news.
Compared to other altcoins such as Litecoin and Ethereum, Vechain’s correlation to BTC is low. According to the team at Coinpreductor, the Vechain correlation to BTC stands at 0.37 compared to the 0.68 for ETH and 0.83 for LTC. They explained the relationship between VET and BTC as well saying that both have a moderate positive relationship. The correlation coefficient of the prices is 0.37 which was estimated based on the previous 100-days price dynamics of both assets.
This correlation value from coinpredictor could vary from -1 to 1 where -1 is the strongest negative correlation and 1 as the strongest positive correlation. The value of 0 indicates that there’s no correlation at all and in the case of VeChain, 0.37 points to VET are not affected by the BTC sudden price movement when compared to other altcoins. A good way to validate this is the analysis of the VET/BTC charts. If these two digital assets are highly correlated, the chart will be less exciting as it will indicate that with every pump or dump of BTC, Vechain will follow. VET denominated in BTC as a result and will not fluctuate as much.
Further dissecting the VET/BTC charts, we can see that VET had a huge gain against BTC on the 8th of July peaking at around 240 Sats. On the same day, VeChain achieved a value of $0.022 as BTC was trading at $9,300 levels. Vechain seems to be in the bullish territory as it can be seen on the daily MACD while the daily MFI is neutral at 46 pointing to a second push up by Vechain.
Summering it up, during bullish periods on the market, some altcoins start do display patterns that are different from the others. VET had a relatively low correlation to Bitcoin when compared to other altcoins. Also, looking at the VET/BTC charts we can see that Vechain will gear up for another push-up.
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