Bitcoin price was under heavy selling pressure on Monday, continuing a sell-off that started on June 7th when it peaked at $72,000.
BTC tested the $60,000 level, meaning it has now lost more than 15% of its value over the past few weeks. Bitcoin’s weakness triggered a major crash among altcoins, with tokens like Turbo, Solana, and Cardano falling more than 20%.
The bullish case for Bitcoin
A sense of pessimism and fear has spread in the crypto industry as the fear and greed index moved to 49, down from the year-to-date high of over 90.
However, some analysts are still optimistic that Bitcoin is still in an uptrend. In an X post, crypto analyst Rekt Fencer explained that BTC will ultimately bounce back later this year.
He cited several potential catalysts that will push Bitcoin higher. First, he noted that Bitcoin tends to consolidate after halving. This consolidation likely happens because of the concept known as buying the rumour, and selling the fact.
In this case, Bitcoin halving happened at a time when the coin was significantly higher following the approval of spot Bitcoin ETFs in January. As such, this consolidation is happening 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 noted three key reasons for the current consolidation:the summer period is a period of stagnation, the uncertainty of the Ethereum ETF, and the lack of a clear narrative in the market. Also, 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 Bitcoin price will ultimately bounce back. Some of the potential catalysts will be the upcoming US election, where Donald Trump has supported digital currencies, interest rate cuts by key central banks, and the approval of Ether ETFs.
Altcoins like Ethereum, Solana, IOTA, and Hedera Hashgraph to benefit
Rekt believes that other altcoins will also benefit from the Bitcoin rebound. In most cases, altcoins, including meme coins like Bonk, Pepe, and Floki tend to outperform Bitcoin during bull runs.
Ethereum price will rise because the SEC has signalled that it will approve most or all ETF applications soon. Such a move will likely lead to more inflows as we saw with Bitcoin a few months ago. This accumulation will happen at a time when the volume of Ethereum balances in exchanges is falling.
Solana price will also benefit when the SEC approves Ethereum ETFs. As one of the biggest and most liquid altcoin, the expectation is that companies will file for Solana ETFs. Just last week, 3iQ Digital Asset Managent filed for North America’s first Solana ETF in Toronto.
If his estimate is correct, it means that other altcoins like IOTA, Hedera Hashgraph, and Zilliqa will resume their rebound.
Bitcoin price chart
Still, there are risks to the BTC and altcoins bullish prediction. The key one is that Bitcoin has formed a triple-top chart pattern at $72,000. In most cases, this pattern is one of the most bearish ones and a crash below the neckline at $56,520 could point to more downside.
