Altcoins have been shedding a significant amount of their value over the past several days and weeks, with the recent Bitcoin selloff sending shockwaves throughout the aggregated cryptocurrency market.
Analysts are now noting that Bitcoin is currently trading just a hair above a critical support level, with a continued defense of this level potentially opening the gates for significantly further upside for altcoins.
This has led one top trader to note that a loss of this level, however, could spark an intense and far reaching selloff.
Bitcoin Trades Above Critical Level as Analysts Eye Altcoin Reactions
At the time of writing, Bitcoin is trading down just under 2% at its current price of $8,520, which marks a notable decline from recent highs of $8,800 that were set yesterday when bulls attempted to catalyze some upwards momentum.
In spite of this, the crypto has been able to hold above a key support level at $8,500 in spite of the bearish reaction to this newfound resistance, with its recent selloff seeming to transform into a bout of rangebound trading between $8,500 and $8,800.
This recent downtrend, and ongoing bout of sideways trading, has proven to be dire for altcoins, with many cutting significantly into their recent gains.
Ethereum is a prime example of a major altcoin that has seen a significant retrace from its recent highs of $290, with the cryptocurrency plummeting to lows of $210 before finding some slight support that has led it to its current price of $216.
Despite the current turbulence within the altcoin markets, one top trader is now noting that these smaller cryptos could soon see intense rallies if Bitcoin is able to maintain above $8,500.
Satoshi Flipper spoke about this in a recent tweet, further going on to add that a drop below this level could lead “shorting everything” to be “quite profitable.”
“If we don’t lose 8500 support, the big money move today will be longing ALTS while $BTC goes from 8500 towards 9k. If we do lose [8500] BTC today, shorting everything will be quite profitable. Be ready for either to take advantage of either play,” he explained.
If we don’t lose 8500 support, the big money move today will be longing ALTS while $BTC goes from 8500 towards 9k.
If we do lose $BTC today, shorting everything will be quite profitable.
Be ready for either to take advantage of either play.
— Satoshi Flipper (@SatoshiFlipper) February 29, 2020
Because Bitcoin does appear to be in the process of testing this key level currently, it is likely the coming several hours will provide insights into where altcoins will trend next.
