Internet Computer (ICP) has been aligning its movements with Bitcoin for an extended period. Despite ICP’s efforts to establish its individual trajectory, recent on-chain analysis indicates that investor sentiment remains uncertain in the short term. Macroaxis data reveals a 90-day correlation of 0.94 between ICP and Bitcoin, underlining their synchronized price movement.
What’s Happening on the ICP Front?
The correlation coefficient nearing 1 suggests ICP and Bitcoin often move in tandem, while a coefficient close to -1 implies divergence. During the last 90 days, ICP’s negative returns have adversely affected Bitcoin’s performance, which has also been lackluster.
Notably, over the past 30 days, ICP saw a resurgence, increasing by 23.55% while maintaining its correlation with Bitcoin. Developments off-chain, like Copper.co’s facilitation of cross-chain infrastructure, further strengthen this dual movement.
ICP Chart Analysis
The Aroon indicator suggests a bullish trend for ICP, with the Aroon Up and Aroon Down lines indicating trend direction. On July 6, ICP broke above its downtrend, hitting $10.25 and staying above its 20 EMA average of $9.13, a sign of a potential upward trend.
Key Inferences
Key takeaways for investors include:
- A 90-day correlation of 0.94 between ICP and Bitcoin.
- ICP’s recent 23.55% rise linked to Bitcoin’s movements.
- Copper.co’s infrastructure enhancing ICP and Bitcoin interaction.
- Aroon indicator predicts an ICP price increase.
- Supertrend and Fibonacci Retracement suggest potential upward movement to $10.80 or $12.14.
If buying pressure increases, Fibonacci Retracement indicates ICP could rise to $10.80, and if the uptrend continues, it may hit $12.14. However, if ICP falls below the 20 EMA average, its price might drop to $9.86.
