- STX price has risen in the past three straight days.
- This rally is because of its close correlation with Bitcoin.
- The amount of Bitcoin secured in Stacks has jumped to $60,000.
Stacks price has done well in the past few days. STX, the native token, has jumped in the past three straight days and is hovering at the highest point since Tuesday last week. This performance mirrors that of Bitcoin, Ethereum, and other altcoins. It was trading at $0.9526, which was about 22% above the lowest level during the weekend.
Bitcoin and STX correlation
The main catalyst for the ongoing STX price rebound is its close correlation with Bitcoin, the biggest cryptocurrency in the world. After weeks of consolidation, Bitcoin managed to move above the key resistance point at $30 in the overnight session. This rally means that Bitcoin has jumped by more than 80% in 2023, meaning it has outperformed the S&P 500 index and gold.
Bitcoin has surged for a number of reasons. The most important one is the view that the Federal Reserve will end its rate hike policy in the next few meetings. For one, analysts believe that inflation will continue going down slowly in the coming months.
Read more: How to buy Bitcoin in Europe.
Data published on Monday by Adobe showed that online inflation has dropped in the past 9 months straight. Economists expect the inflation data scheduled for Wednesday will show that the headline consumer price index (CPI) dropped from 6.0% in February to 5.2% in March. Historically, Bitcoin does well when there are hopes that the Fed will turn a bit dovish.
Stacks tend to do well when Bitcoin price is rising because of their close relationship. For starters, Stacks solves a major problem that exists in the crypto industry. Unlike Ethereum, Bitcoin does not have smart contract capabilities. Therefore, Stacks make it possible for developers to build dApps that leverage Bitcoin’s architecture. And according to the developers, the amount of Bitcoin secured smart contracts in Stacks has jumped to 60k. They hope to get to 100k soon.
Stacks price forecast
The daily chart shows that the STX price has been in a strong bullish trend in the past few days. This rally saw it jump to the year-to-date high of $1.3120 on March 20. The coin is being supported by the 25-day and 50-day moving average. It has also moved above the Woodie pivot point.
Therefore, the outlook of Stacks is bullish, with the next key level to watch being at $1.32, which is the highest point this year. For this to happen, Stacks will need to invalidate the head and shoulders pattern by moving above the right shoulder at $1.050.
