A widely followed crypto analyst is warning investors that altcoins are close to falling as the leading digital asset Bitcoin (BTC) is approaching to drop below key support levels.
Kevin Svenson told his 101,000 Twitter followers that while Bitcoin and Ethereum face downside risk, altcoins continue to bear more of the brunt of the market correction.
“It shows downside risk to Bitcoin.
I’m not worried about BTC or ETH. I will continue to keep these in an ongoing bear trend scenario and accumulate more. However [altcoin’ler] will be deleted in a bear trend. Absolutely destroyed. Be careful.”
The strategist says that BTC has not closed a single day below its 600-day simple moving average (SMA) since the beginning of 2020, which currently acts as critical support.
“BTC has not closed a one-day candle below its 600-day simple moving average since the COVID-19 crash. Also, the 600-day simple moving average has been the main support of this range since mid-January. The 600-day simple moving average is currently $39,250.”
Svenson also notes that Bitcoin and the S&P 500 (SPX) have some degree of positive correlation with the US dollar index (DXY), which pegs the USD against a basket of other fiat currencies. He points out that as DXY climbs up, the stock market may face more downside pressure, thus potentially impacting Bitcoin.
“It seems that SPX is once again starting to have an inverse correlation with the US dollar index. Contrary to what most people think, BTC and SPX have been around since early 2021. [ABD doları] has some degree of positive correlation with
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.