Pro predicts Bitcoins price may bounce back alongside Solana and Ethereum
Bitcoin experienced significant selling pressure on Monday, continuing a downward trend that began on June 7th, when it reached its peak at $72,000.
BTC tested the $60,000 level, resulting in a loss of over 15% of its value in recent weeks. This decline in Bitcoin’s price also triggered a major crash among altcoins, with tokens like Turbo, Solana, and Cardano falling more than 20%.
Despite the prevailing pessimism and fear in the crypto industry, with the fear and greed index dropping from its year-to-date high of over 90 to 49, some analysts remain optimistic about Bitcoin’s future. In a recent post, crypto analyst Rekt Fencer explained that he believes BTC will ultimately bounce back later this year.
Fencer cited several potential catalysts that could push Bitcoin’s price higher. Firstly, he noted that Bitcoin tends to consolidate after halving, a phenomenon known as “buying the rumour, and selling the fact.” In this case, Bitcoin’s halving occurred when the coin was already at a significantly higher price following the approval of spot Bitcoin ETFs in January. Consequently, the current consolidation period is likely due to investors awaiting the next catalyst. In 2016, Bitcoin consolidated for four months after halving, while in 2020, it consolidated for five months.
Rekt also highlighted three key reasons for the current consolidation: the summer period typically experiences stagnation, the uncertainty surrounding the Ethereum ETF, and the lack of a clear narrative in the market. Additionally, negative headlines, such as Germany selling $3 billion in Bitcoins and ETFs recording almost $1 billion in outflows, have contributed to the prevailing negative sentiment. Despite these challenges, Rekt believes that Bitcoin’s price will ultimately rebound, propelled by factors like the upcoming US election, President Donald Trump’s support for digital currencies, interest rate cuts by major central banks, and the approval of Ether ETFs.
Rekt also predicts that other altcoins, including Ethereum, Solana, IOTA, and Hedera Hashgraph, will benefit from Bitcoin’s rebound. Historically, altcoins tend to outperform Bitcoin during bull runs, including meme coins like Bonk, Pepe, and Floki. The expected rise in Ethereum’s price is attributed to the SEC signaling its intention to approve most or all ETF applications in the near future. This approval is likely to attract more inflows, similar to what was observed with Bitcoin a few months ago. Additionally, the accumulation of Ethereum is expected to occur while the volume of Ethereum balances in exchanges is decreasing. Solana’s price is also expected to benefit from the approval of Ethereum ETFs, with companies expected to file for Solana ETFs. Just last week, 3iQ Digital Asset Management filed for North America’s first Solana ETF in Toronto. If Rekt’s estimate is accurate, altcoins like IOTA, Hedera Hashgraph, and Zilliqa will also resume their rebound.
However, it is important to note that there are risks to the bullish predictions for both BTC and altcoins. Bitcoin has formed a triple-top chart pattern at $72,000, which is typically considered a bearish pattern. A crash below the neckline at $56,520 could indicate further downside for Bitcoin and altcoins.
