Bitcoin price could rebound with Solana, Ethereum: pro

Bitcoin price was under heavy selling pressure on Monday, continuing a sell-off that began on June 7 when it peaked at $72,000.

BTC has tested the $60,000 level, meaning it has now lost more than 15% of its value over the past few weeks. Bitcoin’s weakness has sparked 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 across the crypto industry as the Fear and Greed Index rose to 49, down from the yearly high of over 90.

However, some analysts remain optimistic that Bitcoin is still in an uptrend. In an article, crypto analyst Rekt Fencer explained that BTC would eventually rebound 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 is likely happening because of the concept called buying the rumor and selling the fact.

In this case, the Bitcoin halving occurred at a time when the coin was significantly higher after the approval of spot Bitcoin ETFs in January. As such, this consolidation is occurring 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 highlighted three main reasons for the current consolidation: the summer period is a period of stagnation, the uncertainty of the Ethereum ETF and the absence of a clear market discourse. Additionally, the narrative has been quite negative, with headlines like Germany selling $3 billion worth of Bitcoin and ETFs seeing nearly $1 billion in outflows.

Therefore, Rekt believes that the Bitcoin price will eventually rebound. Some of the potential catalysts will be the upcoming US elections, where Donald Trump supported digital currencies, interest rate cuts by major central banks and the approval of Ether ETFs.

Altcoins like Ethereum, Solana, IOTA and Hedera Hashgraph will benefit

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

The price of Ethereum will rise because the SEC has signaled that it will soon approve most or all ETF applications. Such a move will likely lead to more inflows, as we saw with Bitcoin a few months ago. This accumulation will occur at a time when Ethereum volume balances in exchanges is falling.

Solana price will also benefit when the SEC approves Ethereum ETFs. As one of the largest and most liquid altcoins, companies are expected to apply for the Solana ETF. Last week, 3iQ Digital Asset Management 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

However, there are risks to the bullish forecasts for BTC and altcoins. The main one is that Bitcoin formed a triple top chart pattern at $72,000. In most cases, this pattern is one of the most bearish and a crash below the neckline at $56,520 could indicate further decline.

Fuente