Analysis Of Bitcoin Rate With AVAX Token (Btc vs AVAX)
The rate of bitcoin is influenced has some relationship with other tokens. It is important to use scientific principles to examine if it really affected tokens like Avax?
This question shall be answered using the principle of relationship analysis to examine if the rate of bitcoin influence in the market is same Avax token.
Objectives Of The Study
In the course of this article, I shall tend elaborate on the following subtopics under relationship analysis;
What is relationship analysis?
Theories of relationship analysis.
State the importance of the test.
Data collection from coin gecko of price of Bitcoin with price of Avax token.
Analysis and interpretation of data.
Conclusion
What is relationship test?
Relationship test is a test that tends to examine the rate at which variables occur together in a process. The variables that are considered is the price of bitcoin and that of Avax token.
Theories of relationship analysis
The result of relationship analysis falls within any of these categories.
Positive correlation
Negative correlation
Zero level correlation.
Positive correlation
Positive correlation indicates that the rate at which bitcoin activities occurs influences the price of Avax token.
Meaning that as the price of bitcoin rises, the price of Avax token rises and vice versa.
Negative correlation
Negative correlation indicates that the rate of bitcoin influence in the crypto market is opposite that of Avax token.
Zero correlation
Zero correlation the rate at which bitcoin influences the crypto market is not linked with that of Avax token.
The result of our analysis will fall into any of the category listed above.
Importance of relationship analysis
Correlation analysis helps us to identify if variables are actually related or not after its interpretation.
It also identifies the strength of the relationship whether it’s a minimum or maximum level of strength.
It studies the behavioral pattern of data. The data in our case signifies the price of bitcoin and that of Avax token.
The hypothesis for relationship analysis states that there is no relationship between the variables in question. If there is no relationship, you won’t be able to find the strength as well.
I shall attempt to prove with the data provided from coin gecko if this hypothesis is true or not.
The data below presents the date and the prices of bitcoin with that of Avax token in the past 14 days. From june 4 – June 18, 2022.
The variables of bitcoin and Avax are the second and fifth.
I shall run a scatterdot diagram check to verify what direction does the relationship tends to.
From the scatterdot diagram, there is a somewhat positive relationship between the prices of bitcoin and that of Avax token.
I shall attempt to carryout a correlation analysis test.
From the result of the correlation analysis test, there is a strong positive relationship meaning as bitcoin climbs in price, Avax does same bull this as well entails both will and will experience dip at same rate.
Analysis of Maximum and Minumum Price of both tokens
The maximum price and minimum price of bitcoin for that period are $31522.65 and $20,287.11. the Maximum and minimum price of Avax for that period is $27.66 and $14.33.
Conclusion
This article has been able to present the relationship between bitcoin and Avax