Bitcoin Price Could Rebound Alongside Solana and Ethereum: Analyst

Bitcoin experienced significant selling pressure on Monday, continuing a downward trend that began on June 7th when it peaked at $72,000. The cryptocurrency tested the $60,000 level, marking a decline of more than 15% over the past few weeks. This downturn has also triggered substantial losses in altcoins, with tokens such as Turbo, Solana, and Cardano falling by over 20%.

The Bullish Case for Bitcoin

Amid the widespread pessimism in the crypto industry, as evidenced by the fear and greed index dropping to 49 from a year-to-date high of over 90, some analysts remain optimistic about Bitcoin’s prospects. Crypto analyst Rekt Fencer, in a post on X, asserted that Bitcoin would rebound later this year. He cited several potential catalysts for this recovery:

  1. Post-Halving Consolidation: Historically, Bitcoin tends to consolidate after a halving event. This consolidation phase is often due to the “buy the rumor, sell the fact” phenomenon. The recent halving occurred when Bitcoin was high, following the approval of spot Bitcoin ETFs in January. Hence, the current consolidation is seen as a waiting period for the next significant catalyst. In 2016, Bitcoin consolidated for four months post-halving, and in 2020, it consolidated for five months.
  2. Summer Stagnation and Market Uncertainty: Rekt highlighted the summer period as typically one of stagnation. Additionally, uncertainty surrounding the approval of the Ethereum ETF and the lack of a clear market narrative contribute to the current consolidation. Negative headlines, such as Germany selling $3 billion in Bitcoins and ETFs experiencing almost $1 billion in outflows, have also impacted market sentiment.
  3. Potential Future Catalysts: Rekt believes upcoming events could drive Bitcoin’s recovery. These include the US presidential election, where Donald Trump has shown support for digital currencies, potential interest rate cuts by major central banks, and the approval of Ether ETFs.

Altcoins Set to Benefit from Bitcoin’s Rebound

Rekt Fencer also predicts that other altcoins will benefit from Bitcoin’s anticipated rebound. Historically, altcoins, including meme coins like Bonk, Pepe, and Floki, tend to outperform Bitcoin during bull runs. Specific altcoins expected to gain include:

  1. Ethereum: The SEC has indicated it may approve several ETF applications soon, which could lead to significant inflows similar to those seen with Bitcoin earlier. This comes at a time when the volume of Ethereum on exchanges is decreasing, suggesting potential price increases.
  2. Solana: Expected to benefit from the approval of Ethereum ETFs, Solana could see ETF filings increase due to its status as one of the largest and most liquid altcoins. Notably, 3iQ Digital Asset Management recently filed for North America’s first Solana ETF in Toronto.
  3. Other Altcoins: If the market rebounds, altcoins like IOTA, Hedera Hashgraph, and Zilliqa are expected to resume their upward trends.

Risks to the Bullish Prediction

Despite the optimistic outlook, there are risks to the bullish predictions for Bitcoin and altcoins. A key concern is the formation of a triple-top chart pattern at $72,000 for Bitcoin. This pattern is typically bearish, and a drop below the neckline at $56,520 could indicate further downside potential.

In summary, while Bitcoin and major altcoins have faced recent declines, analysts like Rekt Fencer remain hopeful for a rebound driven by historical trends and future market catalysts. However, potential risks remain that could challenge this optimistic outlook.

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