Zcash Surge Continues as Privacy Demand Rises and BTC Correlation Turns Negative

Zcash (ZEC) has gained strong traction in recent weeks as demand for privacy-focused cryptocurrencies increases across the digital asset market. One of the key factors boosting ZEC’s momentum is its unusually low — and currently negative — correlation with Bitcoin. With BTC hovering near $90,000 after a period of decline, Zcash’s ability to move independently has made it particularly attractive to traders seeking diversification.

Recent data shows ZEC’s correlation with Bitcoin sitting at -0.78, signaling a sharp inverse relationship. This means ZEC tends to rise when BTC falls, offering a strategic advantage during broader market uncertainty. This negative correlation has held since early November, underscoring Zcash’s resilience and reducing the likelihood of the asset being pulled down by Bitcoin-driven sell-offs.

Market conditions also appear supportive. Zcash’s liquidation heatmap highlights a significant cluster around the $788 mark. Should ZEC reach this level, about $51 million in short positions could be liquidated, creating a scenario that may discourage bearish traders and potentially accelerate upward price movement. Large liquidation zones often act as fuel for rapid rallies, especially when short sellers are forced to cover positions.

At the moment, ZEC is trading around $671, just beneath the key $700 resistance level. The coin has already climbed more than 65% since the start of the month, reflecting strong market confidence and increased activity from both institutional and retail participants. If current momentum continues, ZEC could realistically target the $1,000 mark, provided it flips the $700, $800, and $900 levels into solid support over the coming days.

However, Zcash still faces risks. If selling pressure strengthens, the price could drop back toward $600, with a deeper correction potentially dragging it to $520 — a move that would weaken the current bullish narrative and increase the likelihood of a sharper downturn.

This combination of strong price action, unique market behavior, and rising interest in privacy technologies positions Zcash as one of the more compelling altcoins to watch in the near term.