{"id":131400,"date":"2020-04-23T02:37:02","date_gmt":"2020-04-23T01:37:02","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=131400"},"modified":"2020-04-23T08:06:06","modified_gmt":"2020-04-23T07:06:06","slug":"these-privacy-coins-are-on-the-move-and-could-soon-lead-the-crypto-market","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/these-privacy-coins-are-on-the-move-and-could-soon-lead-the-crypto-market\/","title":{"rendered":"These privacy coins are on the move and could soon lead the crypto market"},"content":{"rendered":"<p>Zcash and Dash appear to be leading the cryptocurrency market. Despite the recent bullish impulse they went through, a steep correction may be underway.<\/p>\n<h2>High correlation and its predictive powers<\/h2>\n<p>Over the past month, <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a>, <a href=\"https:\/\/cryptoslate.com\/coins\/zcash\/\">Zcash<\/a>, and <a href=\"https:\/\/cryptoslate.com\/coins\/dash\/\">Dash<\/a> have experienced a high correlation regime. Whenever one of these cryptocurrencies moves upwards or downwards the other two tend to follow suit.<\/p>\n<p><a href=\"https:\/\/cryptowat.ch\/correlations\">Data<\/a> from CryptoWatch reveals that the bellwether cryptocurrency and these privacy-centric tokens have an average correlation coefficient above 0.73. This numerical measure can be considered as a strong positive linear relationship.<\/p>\n<figure id=\"attachment_131402\" aria-describedby=\"caption-attachment-131402\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-131402 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-01.34.53-1024x346.png\" alt=\"Bitcoin, Zcash, and Dash Correlation Coefficient by Crypto Watch\" width=\"1024\" height=\"346\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-01.34.53-1024x346.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-01.34.53-300x101.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-01.34.53-768x259.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-01.34.53-1536x519.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-01.34.53.png 1818w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-131402\" class=\"wp-caption-text\">Bitcoin, Zcash, and Dash Correlation Coefficient by CryptoWatch<\/figcaption><\/figure>\n<p>Due to the high levels of correlation between these digital assets, Garry Kabankin, project coordinator at <a href=\"https:\/\/cryptoslate.com\/coins\/santiment\/\">Santiment<\/a>, was able to spot a pattern that has been occurring since the beginning of the month. <a href=\"https:\/\/insights.santiment.net\/read\/privacy-coins-rally-may-lead-to-correction-5735?utm_source=twitter&utm_medium=post&utm_campaign=twitter_privacy_coins_article_garry_042120\">According<\/a> to Kabankin, each time any of the privacy altcoins surges while the flagship cryptocurrency remains stagnant, the market reaches an exhaustion point.<\/p>\n<p>This phenomenon has taken place twice over the last few weeks. The first time it developed was on Apr. 9. Following the bullish momentum that pushed Zcash to a high of $42.2 and Dash to $84.25 while Bitcoin stayed flat, the entire market tumbled.<\/p>\n<p>Similarly, roughly $17.5 billion were wiped off the cryptocurrency market on Apr. 12 after ZEC and DASH topped as BTC consolidated.<\/p>\n<figure style=\"width: 2696px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/7Q5AniWy\/\" alt=\"Bitcoin, Zcash, and Dash Correlation by TradingView\" width=\"2696\" height=\"1572\" \/><figcaption class=\"wp-caption-text\"><a href=\"https:\/\/www.tradingview.com\/x\/7Q5AniWy\/\">Bitcoin, Zcash, and Dash Correlation<\/a> by TradingView<\/figcaption><\/figure>\n<p>The accuracy of these occurrences make Kabankin believe that the privacy tokens\u2019 price action can be used as an \u201cunusual rare indicator\u201d for spotting intermediary tops. Under this premise, it appears that the crypto market could be preparing for a retracement.<\/p>\n<p>A few hours ago, Zcash and Dash\u2019s price jumped 3.9% and 3%, respectively. Meanwhile, Bitcoin kept contained within a narrow trading range.<\/p>\n<figure style=\"width: 2696px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/lnp93erf\/\" alt=\"Bitcoin, Zcash, and Dash Correlation by TradingView\" width=\"2696\" height=\"1572\" \/><figcaption class=\"wp-caption-text\"><a href=\"https:\/\/www.tradingview.com\/x\/lnp93erf\/\">Bitcoin, Zcash, and Dash Correlation<\/a> by TradingView<\/figcaption><\/figure>\n<p>Adding credence to the pessimistic outlook, <a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock\u2019s<\/a> \u201cIn\/Out of the Money Around Price\u201d (IOMAP) model estimates that under the current price levels there is stronger resistance ahead than support for Dash.<\/p>\n<p>More than 13,000 addresses bought over 174,000 DASH between $81 and $82.5. This can be considered a strong supply barrier having in mind that only 12,600 addresses bought 60,000 DASH between $78.2 and $79.6.<\/p>\n<figure id=\"attachment_131401\" aria-describedby=\"caption-attachment-131401\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-131401 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-02.48.47-1024x412.png\" alt=\"In\/Out of the Money Around Price by IntoTheBlock\" width=\"1024\" height=\"412\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-02.48.47-1024x412.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-02.48.47-300x121.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-02.48.47-768x309.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-02.48.47-1536x617.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-23-at-02.48.47-2048x823.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-131401\" class=\"wp-caption-text\">In\/Out of the Money Around Price by <a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock<\/a><\/figcaption><\/figure>\n<p>Even though it is too early to tell whether or not Kabankin\u2019s hypothesis over the correlation between Bitcoin, Zcash, and Dash is correct, market participants must remain cautious about adverse market conditions given the current global financial landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Zcash and Dash appear to be leading the cryptocurrency market. Despite the recent bullish impulse they went through, a steep correction may be underway. High correlation and its predictive powers Over the past month, Bitcoin, Zcash, and Dash have experienced a high correlation regime. Whenever one of these cryptocurrencies moves upwards or downwards the other [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":131341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,61045],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>These privacy coins are on the move and could soon lead the crypto market<\/title>\n<meta name=\"description\" content=\"The high correlation regime between Bitcoin, Zcash, and Dash could spell trouble for the near-term future of the cryptocurrecy market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/these-privacy-coins-are-on-the-move-and-could-soon-lead-the-crypto-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"These privacy coins are on the move and could soon lead the crypto market\" \/>\n<meta property=\"og:description\" content=\"The high correlation regime between Bitcoin, Zcash, and Dash could spell trouble for the near-term future of the cryptocurrecy market.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/these-privacy-coins-are-on-the-move-and-could-soon-lead-the-crypto-market\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-23T01:37:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-23T07:06:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/privacy-coins.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Martinez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Martinez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/these-privacy-coins-are-on-the-move-and-could-soon-lead-the-crypto-market\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/these-privacy-coins-are-on-the-move-and-could-soon-lead-the-crypto-market\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#person\",\"name\":\"Ali Martinez\",\"url\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"caption\":\"Ali Martinez\"},\"jobTitle\":\"Analyst\",\"description\":\"Ali came across Bitcoin\u2019s whitepaper in 2014. 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He was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started accumulating BTC since then. Ali has been working as a content writer for some of the leading media outlets in the cryptocurrency industry.","url":"https:\/\/cryptoslate.com\/author\/ali-martinez\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/131400"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/148"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=131400"}],"version-history":[{"count":9,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/131400\/revisions"}],"predecessor-version":[{"id":131431,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/131400\/revisions\/131431"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/131341"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=131400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=131400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=131400"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=131400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}