Zcash breakout delayed by short-term selling and Bitcoin correlation

Beincrypto reports that Zcash’s bullish structure remains intact but short-term selling pressure and a negative correlation with Bitcoin are delaying a decisive breakout. ZEC is still up nearly 40% over the past 30 days from early December lows, yet momentum has cooled: the token is down close to 8% over the past seven days even as Bitcoin pushed higher.

The Chaikin Money Flow (CMF) has trended lower between December 24 and January 5 and is approaching the zero line, where a break below would signal capital outflows. Roughly 202,000 ZEC — about 1.2% of the circulating supply — was recently unshielded, increasing near-term supply visibility.

The price is consolidating in a bull flag that supports an 85% breakout projection so long as the pattern holds, with $404 identified as the critical invalidation level. Derivatives data underline a short-term bearish tilt but longer-term support: a 7-day Binance ZEC/USDT liquidation map shows short liquidation leverage near $54.38 million versus $24.41 million for longs (shorts over 120% higher), while the 30-day view gives longs roughly a 33% advantage ($52.89 million vs $39.84 million).

Key Topics

Crypto, Zcash, Zec Token, Bitcoin, Chaikin Money Flow, Binance