Bitcoin Signals Potential Rebound While ZCash Faces Sharp Correction
Bitcoin Signals Potential Rebound While ZCash Faces Sharp Correction
Recent market analyses reveal a divergent path for major cryptocurrencies. Bitcoin appears to be nearing a significant price bottom, with on-chain metrics historically preceding bullish reversals, suggesting a rebound could be on the horizon after a period of correction. Conversely, ZCash, which experienced a parabolic rally, is now undergoing a strong price correction, with analysts identifying key support levels amidst warnings that its upward momentum may be exhausted. Despite ZCash's pullback, underlying interest in privacy coins and institutional holdings continue to provide long-term bullish sentiment.
The crypto market currently presents a mixed picture, with the flagship cryptocurrency, Bitcoin (BTC), showing signs of an imminent rebound after a period of correction, while ZCash (ZEC) is experiencing a significant pullback following a parabolic rally.
Bitcoin's market performance has been challenging in recent weeks, leading to a retest of the $100,000 support zone. However, on-chain evaluations, particularly from market analyst Burak Kesmeci, suggest a positive price action is on the horizon. Kesmeci's analysis, based on the Bitcoin: 90-Day Market Price vs Realized Price Gradient Oscillator, indicates that Bitcoin's market price has fallen significantly below its historical cost basis, reaching a value of -1.27 STDV. Historically, readings below -1 STDV have often preceded the end of downtrends and the beginning of price expansions, as seen in past rallies from $82,000 to $100,000 and from $108,000 to $124,000. This suggests that Bitcoin investors are currently paying less than the average recent buyers, potentially leading to an absorption of bearish pressure and a subsequent price rebound. As of this writing, Bitcoin trades around $102,023, reflecting a slight daily loss but poised for a potential bullish reversal if historical patterns hold.
In stark contrast, ZCash (ZEC) has recently undergone a strong price correction, losing 14.54% in the last 24 hours after an impressive parabolic rally that saw it surge over 1136% in the last year, from below $40 to a peak of $750. Market analyst Ali Martinez highlighted that ZCash encountered major resistance around the $750 mark, a level that previously opposed price movement in 2018. Should this resistance hold, Martinez predicts a sustained correction to approximately $325, representing a potential 43% decline, with a further downside target of $125 in the presence of crushing selling pressure. Despite these warnings, ZCash maintains underlying bullish potential, fueled by heightened interest in privacy coins and its inclusion as the second-largest holding in BitMEX co-founder Arthur Hayes' family office, Maelstrom. ZCash currently trades at $572, still boasting significant monthly gains.