The recent analysis by crypto analyst Rekt Capital has brought some much-needed optimism to Bitcoin investors. Despite the massive sell pressure that the flagship crypto has been facing, Rekt Capital suggests that the worst may be over. This is supported by a significant surge in Bitcoin’s dominance, indicating that a reversal may be imminent.
Seller Exhaustion and Price Reversals
Rekt Capital points out that the sell-side volume has reached levels of Seller Exhaustion that have not been seen since the Halving event in April. This is a bullish sign for Bitcoin, as it suggests that the sell pressure is nearly exhausted. This has already been reflected in Bitcoin’s recent rebound after dropping below $50,000 for the first time since January.
Potential for a Rebound to $62,550
Rekt Capital also suggests that Bitcoin could potentially rebound to as high as $62,550 in the short term. This is based on the idea that Bitcoin will fill the CME gap, currently between $59,400 and $62,550. The analyst notes that Bitcoin has a history of filling such gaps, adding weight to the possibility of this scenario playing out.
Analysis from Other Crypto Analysts
Crypto analyst Skew also commented on the recent sell-side volume experienced by Bitcoin. He attributes this to Bitcoin’s failure to hold above $70,000 after a price rebound in July. Skew reassures investors by mentioning that there is no need to panic, as there is no actual chaos in the market yet.
With seller exhaustion at its peak, there is a chance that Bitcoin has found a bottom. This could signify that the current correction may be the last one before the bull run gains momentum. Veteran trader Peter Brandt compares Bitcoin’s decline since the halving to a similar price drop during the 2015 to 2017 Halving bull market cycle.
Data from Coinglass shows that Bitcoin’s dominance has recently hit its highest level since April 2021. This increase can be attributed to Spot Bitcoin ETFs, which have attracted new money into the Bitcoin ecosystem. As a result, altcoins have had to compete for capital from retail investors who are diversifying their investments across multiple crypto assets.
Future Predictions for Bitcoin Dominance
Crypto analysts like Roman predict that Bitcoin’s dominance will continue to rise in the near future. This suggests that Bitcoin will absorb the majority of liquidity in the market until later this year. During this period, Ethereum and other altcoins may continue to trade sideways as investors focus on Bitcoin.
Despite the recent market turmoil, there is a sense of optimism surrounding Bitcoin’s future. With signs of seller exhaustion, potential price reversals, and increasing dominance, Bitcoin may be on the brink of a significant rebound. As the market continues to evolve, it will be interesting to see how these trends play out in the coming months.
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