The uncertainty among Zcash traders may be resolved by the Bitcoin price trend.

Zcash (ZEC) is trading at $220, up 0.10% on the day, as the price continuously fluctuates between two Fibonacci levels after a sharp correction from the $275 region.

The big question for ZEC traders right now is: will Bitcoin's next move break through the current price range, or push the price even lower?

Correlation between ZEC and Bitcoin recovers

The correlation coefficient between ZEC and Bitcoin is currently at 0.91 as of March 22, 2024. This figure is close to the peak of nearly 1.0 in February 2024, when the two assets moved in almost the same direction.

However, this correlation was severely disrupted from February 19th to mid-March. The correlation coefficient dropped from nearly 1.0 to just around 0.05 on March 13th. During that period, ZEC mainly fluctuated according to its own dynamics and was no longer dependent on Bitcoin.

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The rapid recovery of this ratio back to 0.91 indicates that the "going in opposite directions" phase has ended. ZEC is now highly sensitive to Bitcoin's price fluctuations. If Bitcoin rises sharply, ZEC is likely to rise as well . Conversely, if Bitcoin corrects, ZEC is likely to face even stronger downward pressure.

All ZEC transactions carry the same risk of liquidation.

The liquidation map for the ZEC/ USDT pair on Binance currently shows a large cluster of leveraged Short positions concentrated in the $241–$260 price range. The total value of liquidated Short positions at this leverage level reached $12 million at $242 and increased to $15.39 million when it reached $260.

The $241–$260 price range also features many yellow bars, representing Short positions with the largest leverage of 50x. If the price quickly breaks above $242, a series of Short positions will be liquidated, creating additional buying pressure to push the price up alongside the natural upward momentum.

However, below the current ZEC price, there are also many Longing positions that could be liquidated. The bold red lines below $220 indicate that if the price breaks below this level, selling pressure will increase sharply.

ZEC prices are likely to recover.

On the daily chart, ZEC is trading just below the 0.382 Fibonacci retracement level at $222. This is the resistance zone that has halted previous rallies and is now the nearest resistance level.

The price of Zcash is currently trading sideways in a narrow range from $208 (0.236 Fibonacci level) to $222. If the daily candle closes above $222, the price could head towards $245 (0.618 Fibonacci level), an increase of approximately 11% from the current price.

The 0.618 level also coincides with the beginning of the Short cluster that is vulnerable to liquidation on the aforementioned liquidation map. If the price rises to $245, it could further pressure these positions, causing a sharp price increase to the $262 region, which is also the 0.786 Fibonacci level.

On the downside, if the 208 USD mark is broken, the Dip around 196-200 USD, similar to the one at the beginning of March, will be revealed. With a correlation coefficient of 0.91 with Bitcoin, if Bitcoin falls below this crucial support zone, it is very likely to drag ZEC down to this low zone.

ZEC raised $25 million in seed Capital in March 2026. This information provides a more solid foundation for the project; however, short-term price trends still heavily depend on Bitcoin's performance.