Bitcoin, Ethereum, and Solana are basically the same trade right now.

These three supposedly different assets are moving in lockstep as if the same puppet master is controlling them.

The market's most significant assets are suffering from a severe case of copy-paste price action.

Range Riding 

Bitcoin is once again floating between $85K and $95K – down almost 10% over two weeks after the recent pop.

ETH got absolutely hammered as well, dropping 18.55% to $2,171 in the same period.

Solana holders are feeling the most pain with a brutal 19.44% nosedive to $143.

The charts look so similar you could overlay them and barely tell the difference – not exactly what you want from "diversification."

Technical Trouble Everywhere

Bitcoin's 50-day moving average at $92,749 has turned from support to resistance faster than a politician switches positions when called out.

If Bitcoin can't reclaim that level, we're likely looking at further drops toward $84,000.

ETH is stuck below its 50-day moving average at $2,523, with the next support around the psychological $2,100 level.

SOL bulls need to push past the $166 resistance or risk watching it slide toward $135.

All in all, it’s a choppy time out there in the market.

But Why The Correlation?

The Fed's inflation obsession is driving risk appetite across all markets.

When Powell speaks, crypto dumps – it's basically become a meme at this point.

Despite all the excitement about ETFs, institutional players are treating crypto as a single asset class rather than betting on individual projects. 

The market's so interconnected that when Bitcoin decides to take a trip down or up by double-digit percentages, the entire market follows suit. 

High correlation means diversification within crypto isn't protecting anyone – sorry, but your carefully balanced portfolio of Layer 1s is just leveraged Bitcoin exposure with extra steps.

The days when alternative Layer 1s could pump while Bitcoin consolidated are looking increasingly distant.

Smart money is watching Bitcoin's support levels as the leading indicator for everything else.

Hold The Line… Or Else

Bitcoin needs to hold above key support, or we're all going down together.

ETH and SOL might as well be Bitcoin derivatives at this point – they're not showing any independent strength as the 50-day moving averages have become the line in the sand for all three assets.

Until these assets break their correlation, technical analysis on individual coins is becoming increasingly pointless.

The one upside is that deep liquidity pools allow whales to move multiple markets simultaneously – trading bots and algorithms are amplifying the synchronization, creating feedback loops across assets.

Macroeconomic news hits all coins at once, regardless of their fundamentals or use cases, meaning that the entire market has basically become a single trade with different leverage ratios.

The Takeaway

When the correlation is this high, watching Bitcoin tells you everything you need to know about the others, and it saves you time.

A Bitcoin breakdown below $84,000 would likely send ETH under $2,000 and SOL below $130 with near certainty. 

It’s a hard pill to swallow when you realize that your careful "diversification" strategy was an illusion all along.