HBAR Shows Strong Bitcoin Correlation in Recent Price Drop
Over the past week, Hedera’s pricing has had a difficult time rebounding. This happened despite the fact that overall market circumstances brightened momentarily before reverting to their negative state. HBAR made an effort to reach its most recent highs. But it was driven down by the general market slump. Eventually, this demonstrated the altcoin’s strong correlation with Bitcoin’s fluctuations.
Bitcoin Volatility Drives Hedera Weakness and Limited Recovery
HBAR’s correlation with Bitcoin remains exceptionally strong at 0.87, sliding only marginally from last week’s peak. Because of this tight association, Hedera regularly monitors changes in the price of Bitcoin. Given that Bitcoin is now stalled at about $87,000, this is not the best scenario. Hedera has been directly damaged by Bitcoin’s inability to regain bullish momentum, which has prevented any significant recovery. HBAR is more susceptible to volatility driven by Bitcoin due to its lack of independent strength.
Further deterioration is evident in HBAR’s macro momentum, especially in the Chaikin Money Flow (CMF), which recently fell to a seven-month low. Altcoins have an opportunity to stabilize as the indicator moved into the 0.18–0.23 range, which is usually where outflows slow and inflows start. This cycle, though, has been unique. CMF fell below 0.18 before marginally rising, suggesting that bearishness in the broader market is overriding typical reversal indications. This indicates that even in the face of historically excellent conditions for a bounce, investors are still withdrawing funds from HBAR.
Hedera Consolidates Between $0.130 and $0.150
As of this writing, HBAR is trading at $0.1335, just above the $0.130 support level. This level has served as a crucial floor and is still necessary to stop a more severe decline. HBAR may keep consolidating if the market downturn continues. This is particularly plausible if Bitcoin continues to decline, maintaining the token’s value between $0.130 and $0.150. On the other hand, HBAR might recover if Bitcoin does. The altcoin might return to $0.150 if it bounces off $0.130. The negative view would be invalidated if this barrier were to turn into support, opening the road to $0.162.
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