bitcoin price came under heavy selling pressure on Monday, continuing a sell-off that began on June 7 when it hit a high of $72,000.
btc tested the $60,000 level, meaning it has now lost over 15% of its value in recent weeks. bitcoin's weakness caused a huge drop among altcoins, with tokens like Turbo, Solana, and Cardano falling more than 20%.
The bull case for bitcoin
A sense of pessimism and fear has spread across the crypto industry as the Fear and Greed Index rose to 49, below the year-to-date high of over 90.
However, some analysts remain optimistic that bitcoin is still in an uptrend. In an x post, crypto analyst Rekt Fencer explained that btc will finally recover later this year.
He cited several potential catalysts that will drive bitcoin higher. Firstly, he noted that bitcoin tends to consolidate after the halving. This consolidation is probably due to the concept known as buy the rumor and sell the fact.
In this case, the bitcoin halving occurred at a time when the currency was significantly higher following the approval of spot bitcoin ETFs. in January. As such, this consolidation comes as investors wait for the next catalyst. In 2016, bitcoin consolidated for 4 months after halving, while in 2020 it consolidated for five months.
Rekt also pointed out three key reasons for the current consolidation: the summer period being a period of stagnation, the uncertainty of the ethereum ETF, and the lack of a clear narrative in the market. Furthermore, the narrative has been quite negative, with headlines like Germany selling $3 billion in Bitcoins and ETFs recording almost $1 billion in outflows.
Therefore, Rekt believes that the price of bitcoin will eventually recover. Some of the possible catalysts will be the upcoming US elections, where Donald Trump has supported digital currencies, interest rate cuts by major central banks, and the approval of Ether ETFs.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter“>
Altcoins like ethereum, Solana, IOTA and Hedera Hashgraph will benefit
Rekt believes that other altcoins will also benefit from bitcoin's rebound. In most cases, altcoins, including meme coins like Bonk, Pepe, and Floki, tend to outperform bitcoin during bull runs.
The price of ethereum will rise because the SEC has signaled that it will soon approve most or all ETF applications. Such a move is likely to generate more inflows, as we saw with bitcoin a few months ago. This accumulation will occur at a time when ethereum volume eth/chart/exchange-flows/exchange-reserve?exchange=all_exchange&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line” target=”_blank” rel=””>balances on exchanges is falling.
<img loading="lazy" decoding="async" width="1024" height="524" src="https://crypto.news/app/uploads/2024/06/ethereum-Balances-1024×524.jpeg” alt=”ethereum Balances”/>
Solana price will also benefit when the SEC approves ethereum ETFs. As one of the largest and most liquid altcoins, companies are expected to apply for Solana ETFs. Last week, 3iQ Digital Asset Manager filed for Solana's first North American ETF in Toronto.
If their estimate is correct, it means that other altcoins like IOTA, Hedera Hashgraph, and Zilliqa will resume their rebound.
<img loading="lazy" decoding="async" width="1024" height="570" src="https://crypto.news/app/uploads/2024/06/bitcoin-Price-2-1024×570.png” alt=”bitcoin price”/>
bitcoin price chart
Still, there are risks to the bullish prediction of btc and altcoins. The key is that bitcoin has formed a triple top chart pattern at $72,000. In most cases, this pattern is one of the most bearish and a drop below the neckline at $56,520 could indicate further downside.
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>