Stellar on the rise: The correlation might pull Bitcoin up

The last few days have brought considerable growth to the price of some cryptos. The new, selective rally seems to come from Stellar (XLM), which is surging by 13.39% at the time of writing.

While great news for Stellar itself, this kind of behavior might also affect other digital assets. For example, monthly correlation data indicates that there is a considerable correlation between XLM and BTC. In other words, with Stellar breaking out, Bitcoin might receive the necessary pull that would allow it to break its next key resistance; a strong buy signal for bitcoin buyers.

Bitcoin in Stellar in strong correlation

Stellar’s positive behavior is not actually a new development. The coin led several run-ups since the start of the month. Weeks ago, on April 5th, XLM surged by around 7% by the time BTC started making its own move up.

The same pattern occurred again around five days after that. This time, however, BTC reacted slightly faster, making its own move by the time XLM started surging by 5%.

Exactly a week ago, on April 21st, Stellar led another rally, this time managing to spike up by 11% before Bitcoin started following. Regardless, the coin followed, and it followed strongly, making a move towards $7,800 on the occasion.

Now, with XLM skyrocketing even faster and going even higher, Bitcoin could easily make great progress simply by following. XLM chart recently shown that the project started making a bull flag pattern. Then, suddenly, the coin’s price broke out of the pattern and started surging higher up.

Stellar’s pattern indicates major growth: Will Bitcoin follow?

It started the pattern between April 17th and 21st, when it created a flagpole. In days that followed, it worked on creating the flag itself. Estimates said that the breakout from the pattern might result in a 34% surge. This would be the same growth as seen during the previous trend. If true, that would bring the coin’s price to $0.084.

Currently, however, the XLM price sits at $0.070677. The project has a $1.43 billion-large market cap, while its trading volume sits at $808.3 million.

As for Bitcoin, the main question now is whether or not it will follow. The coin is currently hovering at $7,760, and while it trades in the green, its growth in the last 24 hours sits at only 0.16% right now.

With the pending halving and XLM’s growth, a possibility of FOMO (Fear Of Missing Out) is more than possible. If traders do use this opportunity, the coin would likely see a boost all the way up to $8,800, and potentially $9.300. There is a major resistance sitting between these levels, but if BTC breaks it, it will become powerful support.