bitcoin-cycle-might-be-shorter-than-usual/” rel=”nofollow”>Cryptocurrency analyst Rekt Capital has provided some form of optimism for bitcoin investors, suggesting that the sell-off pressure on the flagship cryptocurrency is almost over. This comes amid a significant surge in bitcoin's Dominance.
bitcoin seller exhaustion is at an all-time high
In an x (formerly twitter) x.com/rektcapital/status/1820393106665079278″ rel=”nofollow”>mailRekt Capital mentioned that “the bitcoin-spike-in-trading-volume/” rel=”nofollow”>sell side volume has dramatically reached and even eclipsed seller exhaustion levels seen in previous price reversals to the upside.” The analyst added that bitcoin has not seen this level of sell-side volume since bitcoin-bull-market-glassnode/” rel=”nofollow”>Halving event in April earlier this year.
Related reading
This certainly represents a bullish development for the flagship cryptocurrency, as bitcoin is sure to experience a massive reversal when the selling pressure is almost over. This is already happening, as bitcoin has recovered over the past 24 hours, following its fall. Under $50,000 for the first time since January.
So Rekt Capital x.com/rektcapital/status/1820560337684283739″ rel=”nofollow”>He suggested that bitcoin could recover to $62,550 in the near term as it looks to fill the gap bitcoin-price-crashed-58000/” rel=”nofollow”>CME gapwhich is currently between $59,400 and $62,550. He noted that the odds favor bitcoin filling this gap, as the crypto token has filled every CME gap it has created over the past few months.
Cryptocurrency analyst Skew also x.com/52kskew/status/1820452481958334806″ rel=”nofollow”>commented The analyst referred to the massive selling volume that bitcoin experienced recently. He explained that this happened because bitcoin failed to stay above $70,000 following its price rally in July. The analyst added that there is “no real chaos yet,” suggesting that there was no need to worry about the recent price correction.
With seller exhaustion at its peak, there is also a chance that bitcoin has bottomed and that this could be the final correction before the uptrend kicks into high gear. Veteran trader and analyst bitcoin-price-past-halving-cycles/” rel=”nofollow”>Peter Brandt He noted that bitcoin's decline since the halving means it has now achieved a price drop similar to the halving market bull cycle from 2015 to 2017.
btc dominance hits three-year high
Amidst market turmoil, data from Coinglass shows that bitcoin-dominance-bearish-wedge/” rel=”nofollow”>bitcoin's Dominance recently reached its highest level since April 2021. This increase has been largely due to the bitcoin-spot-etfs-inflow/” rel=”nofollow”>bitcoin Spot ETF, that have caused new money to flow into the bitcoin ecosystem. Meanwhile, altcoins have had to fight for capital from existing retail investors who continue to ethereum-etfs-eth-price/” rel=”nofollow”>divest your money between various crypto assets.
Related reading
Cryptocurrency analysts like Roman have suggested that bitcoin's dominance will likely continue to rise for now, as foretold that the flagship cryptocurrency will continue to absorb all liquidity until the end of this year. Expect ethereum-breakout/” rel=”nofollow”>ethereum and other altcoins continue to trade sideways during this period.
At the time of writing, bitcoin is trading around $56,000, up more than 10% in the past 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
Featured image from Cointribune, chart from Tradingview.com
