• Analyst DonAlt is warning that if the stock market begins to show signs of bearish exhaustion, crypto assets could collapse.
• DonAlt suggests that Bitcoin needs to recover the key psychological level of $30,000 in order to show any bullish momentum.
• As of now, DonAlt believes BTC’s current price action indicates more downside moves are likely.
Trader Warns Crypto Could ‘Nuke’ Amid Market Doldrums
Analyst DonAlt is warning that digital assets may collapse if one financial trend occurs due to the performance of the S&P 500. According to DonAlt, if stocks stop rallying, Bitcoin (BTC) and other cryptos could take a serious hit.
Bitcoin Needs To Recover Key Psychological Level
DonAlt says that Bitcoin could show some semblance of bullishness only if it manages to recover the key psychological level of $30,000. As of now, he believes BTC’s recent price action indicates more downside moves are likely unless it can break through this resistance point.
Bulls Pray For Stock Market To Go ‘Up-Only Mode’
DonAlt is urging bulls to pray for the S&P 500 to continue its upward trend as otherwise crypto could face a major correction. He also notes that while $27,000 serves as support for BTC right now, he would rather wait until there is some positive momentum before investing.
Price Of Bitcoin Currently Trading At $29K
At time of writing, Bitcoin is trading for $29,019 – down 0.9% in the last 24 hours according to CoinMarketCap . This means BTC has yet to break through its key psychological level of $30k; however there may still be hope for bulls if they can keep prices above support levels in this range.
Bottom Line
It remains unclear what will happen with crypto markets moving forward but it’s clear from analyst Donalt’s warnings that investors should pay close attention to both stock and cryptocurrency trends in order to make informed decisions about their investments.