Bitcoin price faced significant selling pressure on Monday, continuing a decline that began on June 7th when it peaked at $72,000. BTC tested the $60,000 level, marking a loss of over 15% in the past few weeks. This weakness in Bitcoin also caused a major drop in altcoins, with tokens like Turbo, Solana, and Cardano falling by more than 20%.

The Bullish Case for Bitcoin

A sense of pessimism has spread in the crypto industry, with the fear and greed index dropping to 49 from a year-to-date high of over 90. Despite this, some analysts remain optimistic about Bitcoin’s uptrend. Crypto analyst Rekt Fencer explained in a recent post that BTC is likely to bounce back later this year.

He identified several potential catalysts for Bitcoin’s recovery. First, he noted that Bitcoin tends to consolidate after halving events. This consolidation typically happens due to the concept of “buying the rumor and selling the fact.” The recent halving occurred when Bitcoin was significantly higher following the approval of spot Bitcoin ETFs earlier in January. As a result, this period of consolidation is expected as investors await the next catalyst. In 2016, Bitcoin consolidated for four 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, which is generally a stagnant time for markets.
  • Uncertainty surrounding the Ethereum ETF.
  • A lack of a clear narrative in the market, coupled with negative headlines such as Germany selling $3 billion in Bitcoins and significant ETF outflows.

Rekt believes that Bitcoin will ultimately recover. Potential catalysts include the upcoming US election, where some candidates support digital currencies, interest rate cuts by key central banks, and the approval of Ether ETFs.

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Altcoins Like Ethereum, Solana, IOTA, and Hedera Hashgraph to Benefit

Rekt also believes that other altcoins will benefit from Bitcoin’s rebound. Generally, altcoins, including meme coins like Bonk, Pepe, and Floki, tend to outperform Bitcoin during bull runs.

Ethereum’s price is expected to rise as the SEC is likely to approve most or all ETF applications soon. This move will probably lead to increased inflows, similar to what was observed with Bitcoin a few months ago. This accumulation comes at a time when the volume of Ethereum balances in exchanges is decreasing.

Solana’s price will also benefit if the SEC approves Ethereum ETFs. As one of the most significant and liquid altcoins, it is expected that companies will file for Solana ETFs. Recently, 3iQ Digital Asset Management filed for North America’s first Solana ETF in Toronto.

If his predictions are accurate, other altcoins like IOTA, Hedera Hashgraph, and Zilliqa may also resume their rebound.

Bitcoin Price Chart

However, there are risks to the bullish prediction for Bitcoin and altcoins. A key concern is that Bitcoin has formed a triple-top chart pattern at $72,000. Typically, this pattern is one of the most bearish, and a crash below the neckline at $56,520 could indicate further downside.

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