After the recent drop, most cryptocurrencies are trading in positive territory. Bitcoin has gained $41,000 level along with Ethereum trading at $3,100 leading the altcoin rally.
The global Cryptocurrency market too has popped up gaining 2.24% over the past 24hrs at $1.92 trillion.
Altcoins To See A Sharp Decline
As per analyst, altcoins are close to being wiped out as the world’s largest cryptocurrency by market capitalization. On the other hand Bitcoin gets closer to falling below key support levels
Popular crypto analyst, Kevin Svenson lets his 101,000 Twitter followers say that even as Bitcoin and Ethereum have a disadvantage of retracing back, altcoins are set to have furthermore correction.
According to the crypto strategist, Kevin Svenson, since early 2020, Bitcoin has not yet closed even a single daily candle below its 600-day simple moving average (SMA) and this is currently acting as critical support. Also in the last 2 months, the Bitcoin price has bounced off more than a dozen times.
The analyst also says, “$39,250 is where [the] 600-day simple moving average is at the moment.”
Furthermore, Kevin Svenson also advises traders that Bitcoin & the S&P 500 (SPX) are correlated on a positive note with the US dollar index (DXY), and this points towards the UDS which is against other fiat currencies. While talking about the stock market in relation to Bitcoin, he says that with DXY moving north, the stock market could see more pressure pulling downwards, thus potentially threatening to drag Bitcoin with it.
At the time of reporting, Bitcoin is changing hands at $41,264 with a surge of 2.89% over the last 24hrs.