BUILDon (B) maintained a strong upward trajectory over the past day, extending the bullish structure it recently established.
After a 36% gain, one of the largest among major cryptocurrencies in terms of market capitalization, the asset could be preparing for a further rise.
This time, however, the rally may not be based solely on traders’ optimism, but also on the strong correlation it shares with Bitcoin (BTC), the market’s leading cryptocurrency.
The role of Bitcoin remains key
One of the major developments surrounding BUILDon’s latest rally is its unusually strong correlation with Bitcoin.
The correlation coefficient, which measures how close two assets are, shows that BUILDon currently has an almost perfect relationship with Bitcoin. At the time of writing, the correlation stood at around 81%.
Simply put, if Bitcoin continues to rally, it is highly likely that BUILDon will follow a similar trajectory in mirroring the movement of the leading cryptocurrency.
Bitcoin often serves as a broader market indicator, helping investors determine whether additional capital should flow into the crypto market.
Currently, Exchange Netflow data from the spot market, which tracks asset movements in and out of exchanges to gauge whether market sentiment is bullish or bearish, suggests that buying pressure continues to increase.
In fact, Netflow spot data shows that approximately $1.24 million in net purchasing activity took place in the last 24 hours as of this writing. This is the largest single-day purchase on record for BUILDon and speaks to growing bullish sentiment around the asset.
BUILDon indicators point to lasting strength
Technical indicators also suggest that buyers are firmly in control, increasing the likelihood that the uptrend will continue.
At press time, the Average Directional Index (ADX), which measures the strength of a trend, indicated a strong bullish structure rather than a weak one. As BUILDon’s price continued to climb, the ADX also trended higher, hitting a reading near 39, well above the key confirmation threshold of 25.
Momentum indicators further supported the bullish outlook. The Moving Average Convergence Divergence (MACD) indicator has moved into positive territory, signaling strengthening buying momentum and confirming that bulls still dominate the market structure.
A continued upward move would further strengthen the already established uptrend and increase the likelihood of BUILDon reaching new local highs.
Bitcoin sentiment remains the deciding factor
Despite BUILDon’s strong setup, Bitcoin’s performance remains key to determining whether the asset can maintain its rally or face a reversal.
Spot Netflow remains one of the clearest indicators of investor sentiment towards Bitcoin, helping to determine whether market participants are bullish or bearish.
Currently, market sentiment remains positive, especially after approximately $149 million in buying activity entered the market. The inflow suggests that buying pressure remains active, a development that continues to support BUILDon’s bullish momentum for now.
Final summary
- Bitcoin currently shares a surprisingly high correlation with BUILDon, close to 100%, a development that further strengthens the token’s bullish outlook.
- Momentum also remained firmly positive, with the broader trend indicating sustained upward pressure over the coming sessions.
