Crypto analyst Rekt Capital has provided a measure of optimism for Bitcoin investors, suggesting that the massive selling pressure on the flagship crypto is almost over. This comes amid a significant increase in inflows Bitcoin’s dominance.
Bitcoin seller exhaustion is at its peak
In an X (formerly Twitter) afterRekt Capital said that “the volume on the sales side has reached and even dramatically eclipsed seller exhaustion levels seen in previous price reversals to the upside.” The analyst added that Bitcoin has not seen this level of sales volume since 2010 Halving event in April earlier this year.
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This undoubtedly marks a bullish development for the flagship crypto as Bitcoin is bound to witness a massive reversal as the selling pressure is almost over. This is already happening as Bitcoin has recovered from its decline over the past 24 hours under $50,000 for the first time since January.
Rekt Capital too suggested that Bitcoin could return to highs of $62,550 in the near term as it looks set to pad inflation CME Gap, which is currently between $59,400 and $62,550. He noted that the odds are favorable for Bitcoin to fill this gap as the crypto token has filled all the CME gaps it has created in recent months.
Crypto analyst Skew too commented on the massive selling volume that Bitcoin has recently experienced. He explained that this happened because Bitcoin failed to hold above $70,000 after the July price rally. The analyst added that there is “no real chaos yet,” suggesting there was no reason to worry about the recent price correction.
With seller exhaustion at its peak, there is a chance that Bitcoin has found a bottom and this could be the final correction before the bull run hits full speed. Experienced trader and analyst Peter Brandt noted that Bitcoin’s decline since the halving means that it has now reached a price drop similar to that seen during the halving bull market cycle from 2015 to 2017.
BTC’s dominance reaches a three-year high
Amid the market turmoil, facts from Coinglass shows this Bitcoin’s dominance recently reached its highest level since April 2021. This increase is largely due to the Discover Bitcoin ETFs, which have allowed new money to flow into the Bitcoin ecosystem. Meanwhile, altcoins have had to compete for capital from existing retail investors who continue to do so divest their money between different crypto assets.
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Crypto analysts like Roman have suggested that Bitcoin’s dominance will likely continue to rise for the foreseeable future, as it has predicted that the flagship crypto will continue to suck up all the liquidity until later this year. He expects Ethereum and other altcoins to continue trading sideways during this period.
At the time of writing, Bitcoin is trading around $56,000, up more than 10% in the past 24 hours. facts from CoinMarketCap.
Featured image from Cointribune, chart from Tradingview.com