Crypto analyst Rekt Capital has offered a glimmer of hope to Bitcoin investors, indicating that the heavy sell pressure on the premier cryptocurrency may be nearing its end. This outlook comes in the midst of a notable increase in Bitcoin’s market dominance.
Rekt Capital, in a post on the platform formerly known as Twitter, highlighted that the sell-side volume has reached and even dramatically surpassed the levels of Seller Exhaustion previously observed during price reversals to the upside. The analyst pointed out that Bitcoin has not encountered this level of sell-side volume since the Halving event in April of this year. This development is considered bullish for Bitcoin, suggesting that a significant price reversal is imminent as the sell pressure dissipates. Indeed, Bitcoin has already bounced back within the last 24 hours after falling below $50,000 for the first time since January.
Rekt Capital also projected that Bitcoin could climb to as high as $62,550 in the short term as it aims to fill the CME gap, which currently lies between $59,400 and $62,550. He emphasized that Bitcoin has consistently filled all CME gaps formed over the past several months, making this potential move even more probable.
Another crypto analyst, Skew, weighed in on the recent surge in sell-side volume. Skew attributed this increase to Bitcoin’s inability to sustain its position above $70,000 following its price rebound in July. He reassured investors that there was “no actual chaos yet,” implying that the recent price correction should not be a cause for alarm.
The peak of seller exhaustion also suggests that Bitcoin may have found a bottom, potentially marking the final correction before a full-fledged bull run begins. Veteran trader and analyst Peter Brandt remarked that the current price drop since the halving event mirrors the decline seen during the 2015 to 2017 Halving bull market cycle.
During this period of market turbulence, data from Coinglass revealed that Bitcoin’s dominance has reached its highest point since April 2021. This surge is largely attributed to Spot Bitcoin ETFs, which have directed new capital into the Bitcoin ecosystem. Meanwhile, altcoins are struggling to attract investments from retail investors who are redistributing their funds across various crypto assets.
Crypto analysts like Roman believe that Bitcoin’s dominance will continue to rise for the time being, predicting that the flagship cryptocurrency will absorb most of the liquidity until later this year. Roman anticipates that Ethereum and other altcoins will remain in a sideways trading pattern during this period.
As of this writing, Bitcoin is trading at approximately $56,000, marking a rise of over 10% in the past 24 hours, according to CoinMarketCap data.
